Currency Updates:
U.S. Dollar Trading (USD) was on the back foot in the risk on environment with the market selling before the FOMC statement but buying back after. Strong November Retail Sales at 0.8% vs. 0.6% helped to push US stocks to fresh year highs. In US stocks, DJIA +47 points closing at 11476, S& P +1 points closing at 1241 and NASDAQ +2 points closing at 2627. Looking ahead, November CPI is forecast at 0.2% vs. 0.2% previously.
The Euro (EUR) tested 1.3500 in the European session but failed at the key resistance and pulled back into the US FOMC statement and extended the pullback afterwards when the Dollar rallied. German ZEW survey improved at 4.3 vs. 1.8 previously. EUR/USD traded with a low of 1.3354 and a high of 1.3500 before closing at 1.3370.
The Japanese Yen (JPY) tested below Y83 before stronger US Retail Sales helped the pair begin to rally when US bond yields increased after the FOMC. The US and Japan have similar Interest Rates at near 0% so any move higher in US interest rate expectations has a major effect. Overall the USDJPY traded with a low of 82.82 and a high of 83.86 before closing the day around 83.60 in the New York session. UPDATE Q4 Tankan Manufacturing Index at 5 vs. 8 previously.
The Sterling (GBP) Strong CPI at 0.4% m/m in November pushed yearly figures to 3.3% and supported Cable as it tested 1.5900 in Early Europe. The mood changed dramatically however as EUR/GBP began to rally and USD found strength with market falling sharply back below 1.5800. Overall the GBP/USD traded with a low of 1.5737 and a high of 1.5914 before closing the day at 1.5760 in the New York session. Looking ahead, November Claimant Count is forecast at -3k vs. -3.7k previously.
The Australian Dollar (AUD) did well in the risk on trading breaking above 1.0000 and overcoming much of the USD strength to close just under parity. AUD/JPY push in the Y83 level comfortably and AUD/NZD is remaining near Year highs on NZD underperformance. Overall the AUD/USD traded with a low of 0.9941 and a high of 1.0031 before closing the US session at 0.9980.
Oil & Gold (XAU) Gold pushed above $1400 but reversed sharply above the level to finish unchanged. Overall trading with a low of USD$1391 and high of USD $1408 before ending the New York session at USD$1395 an ounce. Failed twice at $89 and pulled back to lower $88 supports. WTI Oil Closed -$0.46 at $88.15 a barrel.
