The New York Session saw a relatively muted range due to the US holiday and the absence of stock and bond markets, but the USD emerged stronger at the end of the day as risk aversion remained the primary driver. Traders continued to fear the effects of a global recession and the negative impact on investing returns, leading them to shun riskier asset plays, buying the USD and selling carry trades (JPY-crosses like EUR/JPY). Earlier negative news out of the UK and Europe over additional bailouts for the British banking sector added to the pressure on those currencies and induced additional selling. Many commodity exchanges were closed for the US holiday, but spot oil and gold prices continued to soften, further supporting the USD.
Upcoming Economic Data Releases (Asia Session)
1/19/2009 23:50 JN Tertiary Industry Index (MoM) NOV 0.40% -0.80%
1/20/2009 5:00 JN Consumer Confidence DEC 28.7 27.5
1/20/2009 5:00 JN Consumer Confidence Households DEC 28.4 27.9
1/20/2009 6:00 JN Machine Tool Orders (YoY) DEC F -71.90% - -