The Asia session today seemed to change its recent formula, as what has become the usual wild fluctuations in the Chinese equity markets failed to illicit any serious moves in risk as it had done for most of this week.
Most of today's action in the markets could be attributed to two factors, traders squaring up positions ahead of the Japanese Lower House elections on Sunday, and some yen weakness on the back of a record high unemployment rate of 5.7%. Many reports show the opposition Democratic Party of Japan with an overwhelming lead over the ruling Liberal Democratic Party where they may take control of 300 seats which would in essence break the 50 year hold the LDP has on Japan's reigns. Many expect a DPJ win to give a short term boost to Japanese equities. EUR/JPY pushed higher as traders sold off recent long yen positions, bringing the pair to a 134.90 high after a humble beginning near 134.10.
GBP/JPY did the same, starting the day near 152.00 and topping out close to 152.90 highs on the day. USD/JPY continued higher after hitting a two month low of 93.21 earlier in NY. The Pair eventually reached 93.85 before sagging near 93.70 late in the day.
Once again, after major moves in the NY session, EUR/USD in Asia was catatonic at best, drifting in a 35 pip range between 1.4376 and 1.4342. GBP/USD showed some signs of life, reaching 1.6300 up top and 1.6260 on the downside and basically ending the day flat. Initial enthusiasm over a report that the RBA could boost rates by as early as October was short lived, and that pair as well ended flat on the session after being at highs near 0.8410. The RBA will meet next week to discuss monetary policy as well as interest rates. UK GDP on deck next in the London Session. Enjoy the weekend.
Upcoming Economic Data Releases (London Session) prior expected
| 8/28/2009 | 8:30 | UK | GDP (QoQ) | 2Q P | -0.80% | -0.80% |
| 8/28/2009 | 8:30 | UK | GDP (YoY) | 2Q P | -5.60% | -5.60% |
| 8/28/2009 | 8:30 | UK | Private Consumption | 2Q P | -1.30% | -0.80% |
| 8/28/2009 | 8:30 | UK | Government Spending | 2Q P | 0.20% | 0.60% |
| 8/28/2009 | 8:30 | UK | Gross Fixed Capital Formation | 2Q P | -7.50% | -3.80% |
| 8/28/2009 | 8:30 | UK | Exports | 2Q P | -6.90% | -1.60% |
| 8/28/2009 | 8:30 | UK | Imports | 2Q P | -6.70% | -2.60% |
| 8/28/2009 | 8:30 | UK | Index of Services (3mth/3mth) | JUN | -1.00% | - - |
| 8/28/2009 | 9:00 | EC | Business Climate Indicator | AUG | -2.71 | -2.5 |
| 8/28/2009 | 9:00 | EC | Euro-Zone Consumer Confidence | AUG | -23 | -21 |
| 8/28/2009 | 9:00 | EC | Euro-Zone Economic Confidence | AUG | 76 | 78 |
| 8/28/2009 | 9:00 | EC | Euro-Zone Indust. Confidence | AUG | -30 | -28 |
| 8/28/2009 | 9:00 | EC | Euro-zone Services Confidence | AUG | -18 | -17 |
| 8/28/2009 | 9:30 | SZ | KOF Swiss Leading Indicator | AUG | -0.99 | -0.6 |
