Currency Updates:
U.S. Dollar Trading (USD) in a big data day the Dollar was under heavy pressure as the Euro dragged all pairs higher against the world&rsquo s number one reserve currency. Weekly jobless Claims jumped to 445k vs. 405k forecast and prompted profit taking on equities. In US stocks, DJIA -23 points closing at 11731, S& P -2 points closing at 1283 and NASDAQ -2 points closing at 2735. Looking ahead, December Retail Sale sales are forecast at 0.8% vs. 0.8% previously. January UoM Consumer Confidence is forecast at 75.4 vs. 74.5 previously.
The Euro (EUR) the Euro was the major mover overnight as the ECB held rates at 1.0% and President Trichet was upbeat. Successful Bond Auctions for both Spanish and Italian Debt sent shorts scuttling and the EUR/USD moved above 1.3300. EUR/USD traded with a low of 1.3088 and a high of 1.3385 before closing at 1.3340. Looking ahead, December CPI forecast at 0.6% vs. 0.1% previously.
The Japanese Yen (JPY) was slightly stronger against the beleaguered USD but most crosses rallied as EUR/JPY soared. Overall the USDJPY traded with a low of 82.53 and a high of 83.17 before closing the day around 82.80 in the New York session.
The Sterling (GBP) the Bank of England kept the interest rates at 0.5% and the QE unchanged allowing Cable to rally in sympathy with the Euro. November Industrial Production up 0.4% vs. 0.5%. Overall the GBP/USD traded with a low of 1.5716 and a high of 1.5887 before closing the day at 1.5825 in the New York session. Looking ahead, December PPI forecast at 0.4% vs. 0.3%.
The Australian Dollar (AUD) continued to rally with weakness in the USD allowing a test above parity before a pullback into the US close. EUR/AUD has begun to unwind heavy short positions after months of selling. Overall the AUD/USD traded with a low of 0.9914 and a high of 1.0022 before closing the US session at 0.9970.
Oil & Gold (XAU) fell sharply as the European sovereign debt issue calmed down. Overall trading with a low of USD$1369 and high of USD $1393 before ending the New York session at USD$1375 an ounce. Profit takers emerged after Crude Oil failed to hold above the $92 a barrel level. WTI Oil Closed -$0.78 at $91.08 a barrel.
