With some weak US data overnight dowsing optimism for a quick global recovery, traders looked once again to the US Dollar and the Japanese Yen for temporary shelter from the risk aversion storm. USD/JPY hit a temporary high of 99.14 early in the Asian day and from there it was all downhill as the Yen gathered steam to hit 98.15. The EUR/JPY pair followed the same path, peaking early at 131.50 and subsequently dropping to a low of 129.92, dropping below the critical 130.00 level for the first time since the first of the month. The link between the currency markets and equity markets have been quite noticeable as of late, when equities are lower like today, the Dollar and Yen tend to gain ground as the higher yielding assets such as the Aussie and Kiwi Dollars lose ground as traders flee from risk. With this in mind it is no surprise that the Nikkei followed Wall Street and was down over 1.5% as of this writing. With more US earnings reports on the radar this week, the move could be volatile. The AUD/USD dropped from 0.7298 at its high in NY to a 0.7152 low in Asia, while the AUD/JPY followed the leader in this case dropping in Asia from 71.67 to 70.22 to prove the above statement. Over in Europe, the EUR/USD dropped for the session from 1.3276 to 1.3220 but was fighting back to 1.3260ish level as of this writing during the waning hours of the Asian trade day.
Upcoming Economic Data Releases (London Session):
| 4/15/2009 | 6:00 | GE | Wholesale Price Index (MoM) | MAR | -0.10% | -0.30% |
| 4/15/2009 | 6:00 | GE | Wholesale price Index (YoY) | MAR | -5.70% | -7.10% |
| 4/15/2009 | 8:30 | UK | DCLG UK House Prices (YoY) | FEB | -11.50% | - - |
| 4/15/2009 | 9:15 | EC | ECB's Weber Speaks in Hamburg | 15-Apr |
