The price action in the London session was mixed as markets waited to hear earnings report from multiple US companies.
Economic data out of the UK was a mixed bag as well. Jobless claims came in at a lower than expected 73.7K in March from 136.6K prior. The budget projection for 2009, however, was a worse than expected -175 billion pounds and the UK's Darling now sees the economy contracting -3.5% from a prior projection of -1.25%. Cable traded mixed as a result and was sitting near the 1.4630 session open ahead of NY. The reality of the deficit finally took hold, however, and GBP/USD sank more than -150 pips on the follow.

Early NY trading has seen some fireworks on the back of a major US investment bank reporting much worse than expected earnings and this has sent risk trades tumbling. US equity futures are trading at fresh lows and the yen crosses have taken a spill with USD/JPY down -25 pips and EUR/JPY off -50 pips since the open. Look for the yen crosses to remain heavy as we muddle through the NY session now. US Treasury Secretary Geithner is due to speak at 9am ET and it will be curious to see whether he can talk up the market once again.

Upcoming Economic Data Releases (NY Session) expected prior

  • 4/22 13:00 GMT US Treasury's Geithner Speaks at Economic Club of Washington

  • 4/22 14:00 GMT US House Price Index MoM FEB -0.60% 1.70%

  • 4/22 14:00 GMT GE German Finance Minister Steinbrueck Speaks

  • 4/22 14:30 GMT US DOE U.S. Crude Oil Inventories 17-Apr - - 5671K

  • 4/22 14:30 GMT US DOE U.S. Gasoline Inventories 17-Apr - - -944K