Today's session was a lesson in patience, as markets were confined to small ranges and there were no surprises as the Dollar managed to hold ground from yesterday's move. With most traders anticipating the only data event on the radar, the RBA rate decision, even though everyone pretty much believed that it will be a nonevent, markets moved lazily for the session with no real direction. After yesterday's better than expected ISM data boosted risk trades, those same levels were carried into Asia, with most pairs net flat on the day.
EUR/USD for example, began the session near 1.3980, and after wallowing in about a 45 pip range, looked to leave the session at the same 1.3980 levels. The same stood true for GBP/USD which began the session close to 1.6280 and exited near the same level with moves confined to 57 pip cage. In Japan, USD/JPY was stuck in the mud as its range for the day did not exceed 35 pips between 95.10ish and the 95.45 area. This pair as well was flat on the day. EUR/JPY showed no enthusiasm either, unchanged as Asian equities traded flat.
As mentioned, The RBA did in fact announce that rates were to remain unchanged at 3% for the third consecutive month as Australia looked to steer clear of recession. The pair did flick a quick 20 pips after RBA Governor Stevens commented that there is still some possibility ''...for further easing of monetary policy, if needed...'', but that was the extent of the excitement in Asia. However, a quick look ahead shows excitement should be in good supply, beginning with the slew of data later in London's session and continuing through this weeks start of earnings season on Wall Street and culminating in the three day G8 meeting that begins Wednesday.
Upcoming Economic Data Releases (London 980Session) prior expected
| 7/7/2009 | 6:45 | FR | Trade Balance (Euros) | MAY | -3.8B | -4.0B |
| 7/7/2009 | 7:30 | EC | EU Finance Ministers Hold Meeting in Brussels | 7-Jul | ||
| 7/7/2009 | 8:00 | GE | Merkel's Chancellery Officials Outline Goals for G-8 Summit | 7-Jul | ||
| 7/7/2009 | SZ | Switzerland Calls For Bids on Federal Bonds | 7-Jul | |||
| 7/7/2009 | 8:30 | UK | Industrial Production (MoM) | MAY | 0.30% | 0.20% |
| 7/7/2009 | 8:30 | UK | Industrial Production (YoY) | MAY | -12.30% | -11.30% |
| 7/7/2009 | 8:30 | UK | Manufacturing Production (MoM) | MAY | 0.20% | 0.20% |
| 7/7/2009 | 8:30 | UK | Manufacturing Production (YoY) | MAY | -12.70% | -11.80% |
| 7/7/2009 | 9:50 | EC | IMF's Jose Vinals Speaks in Madrid | 7-Jul | ||
| 7/7/2009 | 10:00 | GE | Factory Orders MoM (sa) | MAY | 0.00% | 0.50% |
| 7/7/2009 | 10:00 | GE | Factory Orders YoY (nsa) | MAY | -37.10% | -31.20% |
| 7/7/2009 | 12:30 | CA | Building Permits MoM | MAY | -5.40% | 0.80% |
| 7/7/2009 | 14:00 | CA | Ivey Purchasing Managers Index | JUN | 48.4 | 50.3 |
| 7/7/2009 | 18:00 | GE | Germany's Steinbrueck, Ex-Chancellor Schmidt Discuss Economics | 7-Jul |
