London Session Recap: from's Research Desk, October 2, 2007 6:01 AM

Today�s London session saw wild moves as volatility soared through the roof in the currency markets. With many experts seeing the recent move in the greenback overdone, the stage looked set for a correction early in the session. The first mover was AUDUSD, which was assaulted by large sellers for much of the first half of the session. After running into offers in the .8950 area, sellers stepped up the pressure. Aussie zipped lower by 150+ pips, taking out technical level after technical level. The carnage finally stopped for the pair in the .8800 area., where buyers stepped in and caused a just as dramatic squeeze higher. Bids lifted the pair back to the .8860s within minutes.

EURUSD also saw volatile trading. After the pair appeared supported in the 1.4220s during previous sessions, buyers finally stepped out of the way of what appeared to be a runaway truck. EURUSD broke through the 1.4210 support level, and ate through bids in the 1.4190s. The pair dealt into the low 1.4180s, where real money buyers took the pair back over the figure. GBPUSD seemed to be on a rollercoaster of its own, shooting lower by 50+ pips to start the session, only to spend the rest of it grinding higher to deal back over 2.0400.

Ahead in the upcoming New York session, traders will be focusing on the ISM Non-Manufacturing number set to be released. We also have ADP Employment change, which is a prelude to Friday�s Non Farm Payrolls. Later in the week we�ll have 2 key rate decisions in the London session. The Bank of England and the European Central Bank are both expected to leave rates unchanged. However, given the recent events in the global financial markets, a surprise isn�t out of the realm of possibility. With many expecting a bounce for the dollar, a surprise cut may become the catalyst.

Upcoming Data Releases (New York Session):

US: 8:15amET ADP Employment Change (Est.: 58K / Prior: 38K)

   10amET ISM Non � Manufacturing  (Est.: 54.6 / Prior 55.8)