Asia Session

The choke hold that has been on the US Dollar as of late was temporality loosened prior to the open in Asia after the Greenback spent its time in New York recording some new lows for 2009. The action was choppy in NY with a high near 1.4297, EUR/USD fell closer to the 1.4140 level and began the day in Asia near 1.4160 and as well, exited the session near the same 1.4160 level, with about 50 pips of moves in between. Most pairs were relatively stable in Asian trading, ending the day close to where they began, with minor moves in between. GBP/USD began the session near 1.64400 and after moves in a less than 60 pip range looked to enter the London stage at the same opening levels. The Yen made small gains in Asia after aggressive selling in NY was used to help fund the reemerging carry trade. USD/JPY playing in a 65 pip range lost 20 pips on the day to close out near 96.40. EUR/JPY dropped about 20 pips for the day to end out near 136.45 after a late day surge in NY pushed the pair over 137.00 for the first time since early April. The 112.00 levels we witnessed early in the year seem far removed indeed. Overall, the climate in the currency markets is dominated currently by data, more precisely, the remaining central bank rate decisions that are on the docket for the week. With the RBA leaving rates unchanged today as expected at 3.0%, we still have Canadian, Euro Zone and British rates on the path ahead, and as could be expected, traders are tentative with these type of announcements on the table.


Upcoming Economic Data Releases (London Session) prior expected

6/2/2009
5:45
SZ
GDP (QoQ)
1Q
-0.30%
-1.50%

6/2/2009
5:45
SZ
GDP (YoY)
1Q
-0.60%
-1.70%

6/2/2009
6:45
FR
Producer Prices (MoM)
APR
-0.40%
-0.20%

6/2/2009
6:45
FR
Producer Prices (YoY)
APR
-5.50%
-6.40%

6/2/2009
7:30
SZ
SVME-Purchasing Managers Index
MAY
34.7
36.5

6/2/2009
8:30
UK
Net Consumer Credit
APR
0.1B
0.1B

6/2/2009
8:30
UK
Net Lending Sec. on Dwellings
APR
0.8B
1.0B

6/2/2009
8:30
UK
Mortgage Approvals
APR
39K
41K

6/2/2009
8:30
UK
M4 Money Supply (MoM)
APR F
0.10%
- -

6/2/2009
8:30
UK
M4 Money Supply (YoY)
APR F
17.40%
- -

6/2/2009
8:30
UK
PMI Construction
MAY
38.1
39.5

6/2/2009
9:00
EC
Euro-Zone Unemployment Rate
APR
8.90%
9.10%