Currency Updates:
U.S. Dollar Trading (USD) once again the USD was very strong in Europe as the markets focused on Eurozone sovereign debt contagion. US Stocks reversed direction on the back of strong October retail sales at 1.2% vs. 0.7% forecast m/m. In US stocks, DJIA +9 points closing at 11202, S& P -1 points closing at 1197 and NASDAQ -4 points closing at 2514. Looking ahead, October Industrial Output is forecast at 0.3% vs. -0.2% previously. November NAHB Housing Market is forecast at 17 vs. 16 previously.
The Euro (EUR) was under constant pressure with rallies sold as the market reacted to uncertainty around bailouts of both Ireland and Portugal as talks continue. September Trade Balance jumped to 2.4bn vs. -4.3bn previously. EUR/USD traded with a low of 1.3562 and a high of 1.3752 before closing at 1.3585. Looking ahead, November ZEW Current Conditions is forecast at 75 vs. 72.6.
The Japanese Yen (JPY) pushed above Y83 after the strong US retail Sales numbers but had earlier kept the level under pressure with many traders turning bullish after months of selling. Q3 GDP improved to 0.9% vs. 0.6%. Overall the USDJPY traded with a low of 82.38 and a high of 83.29 before closing the day around 83.15 in the New York session.
The Sterling (GBP) very weak November UK house Prices down -3.2% vs. +3.1% m/m previously added to the downside pressure already existing from the slumping Euro. GBP/JPY is showing strength holding above Y133 as the USD/JPY begins to trek higher. Overall the GBP/USD traded with a low of 1.6038 and a high of 1.6157 before closing the day at 1.6045 in the New York session. Looking ahead, October Retail Price Index forecast at 0.3% vs. 0.4% previously m/m. October CPI is forecast at 3.1% y/y.
The Australian Dollar (AUD) more selling was seen in Asia and in the US session but there was a rally in the US session after the strong US Retail Sales helped commodities to rally. Overall the AUD/USD traded with a low of 0.9812 and a high of 0.9922 before closing the US session at 0.9830. UPDATE RBA Minutes &mdash November Decision Finely Balanced, Forward looking in regards to Inflation.
Oil & Gold (XAU) Gold continued to be sold on rallies with profit taking competing with safe haven demand. Overall trading with a low of USD$1355 and high of USD $1377 before ending the New York session at USD$1360 an ounce. Oil rebounded before falling sharply into the US close. WTI Oil Closed -$0.22 at $84.66 a barrel.
