Friday, September 4, 2009

08/30/2009 - The USD bounces back from the brink

* A note on end of summer conditions
* Is this as good as it gets?
* Japanese election this weekend
* Details will matter in ECB and RBA rate meetings
* Key data and events to watch next week

Next week sees both month-end and a likely end to summertime trading conditions, both of which have the potential to generate heightened volatility. On Monday, Japanese election results (see below) will start the ball rolling, but liquidity will be hampered midday by the UK Summer Bank holiday which will see most of London absent. NY afternoons will likely remain thin as the US Labor Day holiday on Monday Sept. 7 leads to thinner interest than normal toward the end of the week. At the same time, summer will be ending for many asset managers and an increase in position adjustments may begin from Sept.1. Lastly, Friday will see the August US NFP report, always an important catalyst for volatility. Full text »

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