Asia Session - September 16, 2008 1:58 AM

A good deal of Asia returned from a long holiday weekend to face the current banking maelstrom for the very first time, and equities and the US Dollar were the victims of a widespread spree of risk aversion. As Asian stocks tumbled to 5% losses across the board, the Dollar hit a two month low versus the Yen, a the USD/JPY continued its slide from earlier in NY. With the Yen in high demand, USD/JPY erased its session high of 104.79 early and it a low of 104.00, but could not break through the figure. EUR/JPY dropped about 150 pips, from 149.51 to 147.97 as many Central Banks tried to calm the panic and help boost liquidity in the markets. To add insult to injury may traders were avoiding the Dollar as speculation arose that the US Fed may in fact cut rates up to .50 basis points. EUR/USD was choppy, in a range from 1.4308 and 1.4192, but down slightly on the session as traders squared up before what looks to be poor CPI and ZEW Survey data ahead in the London session. Full text »

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