The main theme for the final Asia session of the week was the USD reversal from highly publicized weakness over the past few days.
After sinking to even lower lows in NY, the pair began its rebound against most of the majors with the help of both Ben Bernanke and Larry Summers talking up the greenback, and also some Fed members chiming in over the wires. USDJPY shot higher, breaking through the 89.00 handle and continuing upward.
Euro also felt the pressure, with EURUSD giving back some NY gains, and dealing towards 1.4700. The comments alone were enough to ignite the dollar, with a lack of data in the session to propel any movement.
XAUUSD even saw a bit of retreat, after seeing soaring prices off of dollar fears and what turned out to be unsubstantiated rumors.
Ahead in the upcoming London session, we may see some follow through on either USD short covering or any momentum type buying. On the data front, the main driver will be out of the UK, where traders will be expected PPI.
Upcoming Economic Data Releases (London Session) prior expected
| 10/9/2009 | 8:30 | UK | PPI Input NSA (MoM) | SEP | 2.20% | -0.80% |
| 10/9/2009 | 8:30 | UK | PPI Input NSA (YoY) | SEP | -7.50% | -6.80% |
| 10/9/2009 | 8:30 | UK | PPI Output n.s.a. (MoM) | SEP | 0.20% | 0.10% |
| 10/9/2009 | 8:30 | UK | PPI Output n.s.a. (YoY) | SEP | -0.40% | -0.10% |
| 10/9/2009 | 8:30 | UK | PPI Output Core NSA (MoM) | SEP | 0.20% | 0.20% |
| 10/9/2009 | 8:30 | UK | PPI Output Core NSA (YoY) | SEP | 0.70% | 0.90% |
| 10/9/2009 | 8:30 | UK | Visible Trade Balance GBP/Mn | AUG | -£6479 | -£6300 |
| 10/9/2009 | 8:30 | UK | Trade Balance Non EU GBP/Mn | AUG | -£3925 | -£3600 |
| 10/9/2009 | 8:30 | UK | Total Trade Balance (GBP/Mln) | AUG | -£2447 | -£2300 |
