After yesterday's session of wicked moves that was followed by a wild ride in New York as a result of the FOMC decision, trading for today was tame in comparison. With Japan back from a three day holiday the markets were less volatile, but that didn't stop the continued slide of the US Dollar. After a huge surge of risk assets after the FOMC in NY, the risk aversion swept in and bottomed out in the early hours of the Asian day. From those early lows the risk assets made moves higher, once again to the chagrin of the greenback. The Aussie dollar was at lows of 0.8650 early on, but erased those levels by climbing to levels just over .8710. The Kiwi Dollar followed the same path, starting out near 0.7160 and touching highs near 0.7210. The EUR/USD stayed relatively flat for the day after visiting a high near 1.4750 and a low under 1.4690. GBP/USD closed a few pips higher than the 1.6345 open.
The yen made gains across the spectrum today as falling equity shares pushed traders to risk aversion in the form of the Japanese Yen. A 91.60 level in USD/JPY was quickly reduced to the 90.80 area as the day wore on. The crosses fared no better as EUR/JPY dropped over a big figure to a 133.60 low and GBP/JPY collapsed to 148.40 levels after a start near 149.50.
The next big test for the markets is tomorrow's employment and home sales data due out in NY. Once we get past that all ears will be open for comments on the dollar at the G-20 meeting to be held this weekend.
Upcoming Economic Data Releases (London Session) prior expected
| 9/24/2009 | 8:00 | GE | IFO - Business Climate | SEP | 90.5 | 92 |
| 9/24/2009 | 8:00 | GE | IFO - Current Assessment | SEP | 86.1 | 87.7 |
| 9/24/2009 | 8:00 | GE | IFO - Expectations | SEP | 95 | 96.6 |
| 9/24/2009 | 8:30 | GE | Merkel, Steinbrueck Comment on Outcome of Pittsburgh G20 Event | 24-Sep | ||
| 9/24/2009 | 12:15 | UK | Bank of England's Dale to Make Speech | 24-Sep |
