Currency Updates:
U.S. Dollar Trading (USD) the Dollar gained across the board as the Chinese stock market plunged and fears of Eurozone bailouts flourished. October Industrial Production gained 0.5% m/m and October PPI jumped 0.4% m/m. The bigger story was the stock market slump however down in Europe and the US as well. In US stocks, DJIA -178 points closing at 11023, S& P -19 points closing at 1178 and NASDAQ -43 points closing at 2649. Looking ahead, October CPI forecast at 0.3% vs. 0.1% previously. October House Starts are forecast at 0.6mn vs. 0.61mn previously. Also Ahead, Weekly Crude Oil Inventories is forecast at -0.5mn vs. -3.3mn previously.
The Euro (EUR) fell below 1.3500 as the market reacts negatively to the ongoing uncertainty to European debt crisis. November ZEW Economic sentiment gained 1.8 vs. -5.9 forecast. The Irish PM told the market that Ireland had made no application for Aid although Eurogroup&rsquo s Junker did say they would support Ireland if asked. EUR/USD traded with a low of 1.3447 and a high of 1.3658 before closing at 1.3480.
The Japanese Yen (JPY) weakened against the strengthening dollar but was well support of safe haven flows against most crosses. USD/JPY pushed for fresh month highs above Y83.50. Overall the USDJPY traded with a low of 82.83 and a high of 83.61 before closing the day around 83.35 in the New York session.
The Sterling (GBP) October CPI came in stronger than expect at 3.2% y/y forcing BOE king to send another letter to the government. The upside was limited however and the market crash through 1.6000 on later comments from King that the BOE could expand QE if it wanted to. Overall the GBP/USD traded with a low of 1.5837 and a high of 1.6090 before closing the day at 1.5885 in the New York session. Looking ahead, October Claimant Count is forecast at 5k vs. 5.3k previously.
The Australian Dollar (AUD) fell victim to the weakening investor sentiment tracking commodities and stocks lower. The RBA minutes were also quite weak with the November rate hike seen as a finely balanced decision and a reaction to future inflation risks. Overall the AUD/USD traded with a low of 0.9723 and a high of 0.9895 before closing the US session at 0.9770.
Oil & Gold (XAU) the Gold correction continued with heavy selling pushing the precious metal down over $20 an ounce. Overall trading with a low of USD$1329 and high of USD $1364 before ending the New York session at USD$1339 an ounce. Oil fell sharply in sympathy with rest of the market. WTI Oil Closed -$2.69 at $82.17 a barrel.
