The price action in London trading was relatively lukewarm as risk trades rebounded modestly after an overnight rout. The weekend G7 meeting ended up being a non-event, as many expected, and horrid Japanese GDP data continues to weigh on confidence. European bourses are trading about -0.5% lower on average but risky trades in FX land were a touch higher. EUR/USD rose about 10 pips and was sitting near the 1.2550/60 area ahead of the NY open. The yen crosses were also modestly higher with USD/JPY adding 15 pips to 91.70/80 while EUR/JPY jumped about 30 points into the 117.00/10 zone.
The NY session is likely to be light on volume now as equity and bond markets are closed for the President's Day holiday. This could see volatility spike in FX and technical levels are likely to be tried and tested in full force. Economic data is ultra light as well with only Canadian manufacturing shipments and international capital flows noteworthy. In other words, look for USD/CAD to be active in early NY trading. Also look for a speech by Trichet to potentially elicit some EUR/USD action.
Upcoming Economic Data Releases (NY Session) prev est
- 2/16 13:30 GMT CA Manufacturing Shipments MoM DEC -6.40% -5.50%
- 2/16 13:30 GMT CA Int'l Securities Transactions DEC -4.300B -2.500B
- 2/16 14:00 GMT UK Bank of England's Bean to Make Speech
- 2/16 14:40 GMT US Fed's Duke Speaks in Arizona on Stabilizing Housing Market
- 2/16 14:45 GMT EC ECB's Trichet Speaks in Brussels 16-Feb
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