Currency Updates:
U.S. Dollar Trading (USD) investors continued to punish the smaller European countries selling bonds aggressively and sparking further risk aversion in global stock markets. US Data was mixed with November Chicago PMI forecast at 62.5 vs. 60.0 previously and September Case Shiller House Price index +0.6% vs. +1.7% y/y previously. In US stocks, DJIA -46 points closing at 11006, S& P -7 points closing at 1180 and NASDAQ -9 points closing at 2498. Looking ahead, November ADP National Employment is forecast at 69k vs. 43k.
The Euro (EUR) with debt contagion issues spreading to multiple countries in the Eurozone investors are selling the Euro relentlessly. A test below 1.3000 in Europe was bought but then late in the US session S& P put Portugal on Negative Ratings Watch and the Euro moved back to close under the key 1.3000 handle. EUR/USD traded with a low of 1.2968 and a high of 1.3152 before closing at 1.2980. Looking ahead, October Retail Sales are forecast at +1.3% vs. -2.3% previously.
The Japanese Yen (JPY) Yen cross selling overwhelmed the USD/JPY uptrend pushing the major back below Y84 to find support in the mid Y83 region. AUD/JPY and EUR/JPY led the move lower in the European session. Overall the USDJPY traded with a low of 83.41 and a high of 84.29 before closing the day around 84.70 in the New York session.
The Sterling (GBP) November GFK Consumer Confidence fell to -21 vs. -19 previously as consumer outlook darkens and UK house prices fall. GBP/USD tested 1.5500 briefly but then found support on heavy EUR/GBP selling. Overall the GBP/USD traded with a low of 1.5483 and a high of 1.5599 before closing the day at 1.5570 in the New York session. Looking ahead, November Nationwide House Prices is forecast at -0.2% vs. 0.7% previously.
The Australian Dollar (AUD) was under pressure being sold on rallies given the weakness in Chinese stocks and Portuguese debt downgrade warnings. October Building Permits were strong gaining +9% vs. 1.5% forecast. Overall the AUD/USD traded with a low of 0.9542 and a high of 0.9663 before closing the US session at 0.9595. Looking ahead, Q3 GDP forecast at 0.5% vs. 1.2% previously.
Oil & Gold (XAU) surged higher on sovereign debt concerns heading back towards the $1400 level once again. Overall trading with a low of USD$1362 and high of USD $1390 before ending the New York session at USD$1385 an ounce. Oil tracked the weakness in investor sentiment falling back heavily in US trade. WTI Oil Closed -$1.66 at $84.07 a barrel.
