Currency Updates:
U.S. Dollar Trading (USD) had a volatile day strong in Asia and Europe as risk was & lsquo off& rsquo while the markets waited for Irish bailout news and China raise banks reserve ratios. The US session reversed sentiment however with stocks turning positive and the USD sold. Fed Chief Bernanke used a speech to the ECB to defend the Fed& rsquo s QE2 decision and also highlight it decision was not aimed at weakening the Dollar. In US stocks, DJIA +22 points closing at 11203, S& P +3 points closing at 1199 and NASDAQ +3 points closing at 2518.
The Euro (EUR) received a boost from the Irish PM Cowen who stated he was in talks with the IMF/EU for the best possible bailout package. The market opened strong on Monday morning on the back of these developments but follow through buying will require more concrete news. EUR/USD traded with a low of 1.3609 and a high of 1.3731 before closing at 1.3685. Looking ahead, ECB President Trichet speaks today.
The Japanese Yen (JPY) had a very quiet end to the weekend trading in a 50 pip range above Y83. Crosses were more volatile tracking the majors with AUD/JPY falling sharply on the China news and EUR/JPY reacting to Irish news flow. Overall the USDJPY traded with a low of 83.15 and a high of 83.64 before closing the day around 83.46 in the New York session
The Sterling (GBP) was sold hard in the US session as EUR/GBP found some solid support and Cable broke below 1.6000. EUR/GBP jumped from 0.8490 to 0.8570. The outlook for Cable is very mixed with range trading around the 1.6000 level likely until a new catalyst is found. Overall the GBP/USD traded with a low of 1.5938 and a high of 1.6094 before closing the day at 1.5985 in the New York session.
The Australian Dollar (AUD) was hit hard from the China Bank Reserve ratio hike but support was found   near the 0.9820 level and when US stocks rallied the Aussie rebounded. A retest of the key parity level would require stock markets to continue their uptrend. Overall the AUD/USD traded with a low of 0.9816 and a high of 0.9911 before closing the US session at 0.9857.
Oil & Gold (XAU) Gold continued to find sellers above $1360 and came under heavy selling in the US session before bouncing later into the close. Overall trading with a low of USD$1341 and high of USD $1363 before ending the New York session at USD$1354 an ounce. Oil Closed roughly unchanged recovering from selling after the China tightening news. WTI Oil Closed +$0.06 at $81.98 a barrel.
