Forex News

7/21/2008 3:00 PM: EUR/$..1.5888 $/JPY..106.73 GBP/$..1.9982 $/CHF..1.0209 AUD/$..0.9753 $/CAD..1.0010

FX Listless, Awaits Data by Korman Tam

The trading week kicked off to a quiet start with the Japanese market away on holiday and a dearth of fresh economic news for traders to digest. Moving the markets today was a better-than-forecast Q2 earnings report from Bank of America, which, combined with the earnings reports from last week, instills renewed confidence in the financial sector. Although earnings plunged by 41% to $0.72 per share, it exceeded consensus estimates for $0.53 per share, prompting currency traders to push the euro/yen pair to a new record high at 169.89.

The economic calendar from the US consists of the Richmond Fed survey, weekly jobless claims, June existing home sales, building permits, durable goods orders, July University of Michigan consumer confidence, and June home sales. The data will highlight the current hurdles impeding the economy with further declines expected in both the housing market and consumer sentiment. Fears of rapid deterioration in the financial sector have subsided somewhat following recent better-than-expected earnings reports from banks. Nonetheless, the Fed has revealed increased concern over the outlook of the economy, tempering market sentiment for an FOMC rate hike in the coming months.