Today's session saw the Yen slip off of its massive NY session gains that were sparked by traders seeking a safe haven in a risk adverse climate brought on by concerns over global growth. After peaking mid day in NY on almost 2% moves against both the Euro and Dollar, the retracement began, and the follow through continued into Asia with the Yen falling amidst a flurry of sales. The dollar received the same treatment, as cooler heads prevailed from the earlier panic to flee riskier assets. USD/JPY continued to bounce from its earlier 5 month low of 91.80, pushing from a 92.80ish open to break the 93.50 level before a 25 pip retracement to end the session. After an earlier collapse from 131.50 to just over 127.00, EUR/JPY opened the day just under 129.00 and drove a full big figure higher to flirt with 130.00.
GBP/JPY produced an even more dynamic move, grinding higher from 148.10 session lows to highs near 150.45, only two big figures short of yesterdays highs. AUD/JPY and NZD/JPY both posted nice gains as well.
The Dollar which is also a haven for those traders seeking safety in times of uncertainty was stripped of earlier gains as well. After a dip to 1.3858, EUR/USD was able to reach and breech the 1.3900 level as it head into London trading. GBP/USD was also able to post 80 pip gains to just over 1.6105. In Australia, the Aussie Dollar rose for the session despite employment data that showed the unemployment rate at a six year high of 5.8%. Although this number is surely disconcerting, it was less than the 5.9% forecast and a direct result of layoffs in the coal and iron industries due to a pause in global consumption. Later in London we have the BoE rate decision which is likely to be a non-event as rates look to remain unchanged at 0.50%. And finally, tomorrow we have weekly unemployment claims out of the US which always seem to help spark moves in the FX markets.
Upcoming Economic Data Releases (London Session) prior expected
