Thursday, July 30, 2009

Today's Market Update Asia Session

Some risk appetite returned to the marketplace today in Asia as US equities shrugged off flu fears early and traders felt a little more confident as Asian equities rallied. With Japan out on holiday for the beginning of the Golden Week celebrations, trading was subtle, but the directions were clear as the Yen and Dollar lost favor and the Crosses gained ground as the FX markets continued to reflect moves in equities. USD/JPY climbed higher from the opening lows of 96.37 to reach highs of 97.04, and the EUR/JPY followed the same path, opening near lows of 126.21 and reaching highs of 127.92. All yen crosses bounced back as investors bought the riskier assets as hope surfaced that the swine flu death tolls as well as the global economy were seemingly stabilizing. However, it would be safe to say that the extent of this possible pandemic would be hard to gauge for the average person. On the economic front, a better than expected US consumer confidence number of 39.2 as opposed to 29.7 helped pump enthusiasm into the riskier assets. EUR/USD made a nice run straight up in Asia, from 1.3121 to just over the 1.3200 levels as London opened for business. Notable data for tomorrow in the US the FOMC will release its statement at 18:15 GMT and the target rate should remain 0.00% - 0.25%.......

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