Currency Updates:
U.S. Dollar Trading (USD) the dollar gained gradually throughout the day as stocks were flat and traders pared back bets of aggressive FED expansion. October CB Consumer Confidence increased to 50.2 vs. 48.6 previously. In US stocks, DJIA +5 points closing at 11169, S& P +0 points closing at 1185 and NASDAQ +6 points closing at 2497. Looking ahead, September Durable Goods Orders are forecast at 2 vs. -1.5% previously.
The Euro (EUR) was under continuous pressure from both the USD and then the Pound after very strong UK GDP numbers. October German Consumer Confidence remained at 4.9. Support is found at last week& rsquo s lows of 1.3700. EUR/USD traded with a low of 1.3824 and a high of 1.3984 before closing at 1.3950. Looking ahead, October German Consumer Confidence is forecast at 5.2 vs. 4.9 previously.
The Japanese Yen (JPY) grinded higher on the back of USD buybacks and the major reclaimed Y81 to test Y81.60. The USD/JPY is extremely sensitive to US Central Bank monetary policy and any hint QE2 will be smaller than expected will help the pair rally. Overall the USDJPY traded with a low of 80.60 and a high of 81.68 before closing the day around 81.40 in the New York session.
The Sterling (GBP) was the best performing currency in the market as the Q3 GDP figures surprised with an impressive 0.8% Q/Q vs. 0.4% Q/Q forecast. EUR/GBP showed the Pound Strength clearly with the recent trend reversing for a test of 0.8740. Overall the GBP/USD traded with a low of 1.5704 and a high of 1.5899 before closing the day at 1.5840 in the New York session.
The Australian Dollar (AUD) tracked the Euro lower but the selling was mild as the market awaits key inflation data before determining whether the Australian Central Bank will raise rates this year. AUD/JPY was stable above the key Y80 level. Overall the AUD/USD traded with a low of 0.9812 and a high of 0.9929 before closing the US session at 0.9850. UPDATE Q3 CPI WEAKER THAN EXPECTED 0.7% Q/Q vs. 0.9% FORECAST.
Oil & Gold (XAU) dipped in the US session but found support to finish roughly unchanged on the day. Overall trading with a low of USD$1327 and high of USD $1344 before ending the New York session at USD$1339 an ounce. Oil was quiet staying inside yesterday& rsquo s range. WTI Oil Closed +$0.2 at $82.30 a barrel.
