Currency Updates:
U.S. Dollar Trading (USD) the market is readjusting its expectations of FED easing to a lower amount and this is helped the Dollar to rally and inducing stocks markets to pull back. September Durable Goods Orders gained 3.3% vs. 2% excepted. In US stocks, DJIA -43 points closing at 11126, S& P -3 points closing at 1182 and NASDAQ +5 points closing at 2503. Looking ahead, Weekly Jobless Claims are forecast at 453k vs. 452k previously.
The Euro (EUR) suffered from the resurgent USD falling steadily all day hitting lows in Europe on French Terrorism fears and residual Greece/Portuguese Debt Concerns. EUR/USD traded with a low of 1.3733 and a high of 1.3880 before closing at 1.3775. Looking ahead, October German Unemployment is forecast at 7.4% vs. 7.5% previously.
The Japanese Yen (JPY) was weaker against the USD but gained against risk currencies as stock markets turned red. Y82 capped in New York but a second test could happen in Asia if the market feels the downside is over for the time being with the market positioned heavily short. Overall the USDJPY traded with a low of 81.36 and a high of 82.01 before closing the day around 81.70 in the New York session. Looking ahead, September Retail Sales is forecast at 3% vs.4.3% previously.
The Sterling (GBP) fell against the Dollar but held up better than most as the residual effects of a strong GDP print echoed throughout the UK media today. Talk that the economy was not going into a double dip help limit expectations of the BOE expanding its asset purchase program next month. Overall the GBP/USD traded with a low of 1.5728 and a high of 1.5869 before closing the day at 1.5785 in the New York session. Looking ahead, October CBI Distributive Trades is forecast at 35 vs. 49 previously.
The Australian Dollar (AUD) the big mover on the day as Q3 CPI came in weaker than expected at 07% Q/Q. vs. 0.9% forecast. The weakness was compounded by US stock market weakness which sent the Aussie for a test of 0.9650. Overall the AUD/USD traded with a low of 0.9651 and a high of 0.9865 before closing the US session at 0.9720. UPDATE RBNZ HOLD AT 3.0%
Oil & Gold (XAU) fell back on lower US QE2 expectations. Overall trading with a low of USD$1318 and high of USD $1344 before ending the New York session at USD$1327 an ounce. Oil fell back slightly but bounced off lows. WTI Oil Closed -$0.30 at $82.00 a barrel
