Currency Updates:
U.S. Dollar Trading (USD) was weak early on before re-gathering its compsure against a number of majors following rumours that the US will assure China and other developing nations that Quantitative Easing measures would not be of awe huge proportions. Such speculation was supported from comments made by Fed member Bullard, who was optimistic on his outlook of the US economy, and went further by stating he would support quantitative easing in &ldquo small increments&rdquo . Further, US Treasury Sec Geithner mentioned he hoped that the upcoming G20 meeting in Korea would establish Currency guidelines. In Data specific news, Weekly Jobless claims fell to 452K from 462K, whilst the Philly fed manufacturing survey increased to 1%. US Share markets saw the Dow Jones close slightly higher up 0.35%, S& P up smalls 0.03%, and the NASDAQ up also 0.09%. In news ahead, most attention will surround the G20 meeting scheduled to take place in Korea this weekend.
The Euro (EUR) eased on speculation that the much publicized second installment of Quantitative Easing from the US will not be so desperate. Euro also suffered as Commodities eased reprieving the USD weakness. In domestic news, EZ PMI Manufacturing data was released above expectation, reading at 54.1 for the month of October, up from 53.7. PMI Services on the contrary fell to 53.2 from 54.1. The EURUSD traded with a low of 1.3874 and a high of 1.4050 before closing the day at 1.3923.
The Japanese Yen (JPY) pushed higher in the Asian session as US Treasury Sec Geithner said he did not perceive the Euro and the Japanese Yen to gain much further against the USD. Nonetheless the USDJPY failed to break out of its recent range trading with a low of 80.93 a high of 81.82 before closing the day at 81.32
The Sterling (GBP) was knocked about on Thursday, little aided by a fall of -0.2% in Retail Sales for September and a downward revision in the previous month. The effects of the previous day&rsquo s UK austerity measures did little to aid in upward bias for the Sterling Pound. Overall the GBPUSD traded with a low of 1.5688 a high of 1.5848 before closing the day at 1.5704
The Australian Dollar (AUD) also eased against a rejuvenated dollar in overnight trade despite ongoing expectation of a rate hike by the RBA as early as November. The AUD will await the G20 developments to gauge a clearer sentiment in what has proved a whippy trading week for the Aussie dollar. Overall the AUD traded with a low of 0.9745 a high of 0.9893 before closing the day at 0.9784
Oil & Gold (XAU) was sold aggressively down as much as 2.3% on Thursday, before ending the day lower by US$18.80 an ounce to close at US$1,324.75. Crude Oil in similar fashion eased by US$1.21 to US$80.56 a barrel.
