Currency Updates:
U.S. Dollar Trading (USD) the market continued with thin holiday trading but found itself under profit taking flows with the lack of fresh news. Also adding to the profit taking is the FOMC meeting on Wednesday in the US session with speculation the FED may change its tone slightly. In US stocks, DJIA -26 points closing at 12479, S& P -2 points closing at 1335 and NASDAQ +5 points closing at 2825. Looking ahead, Febraury Case Shiller forecast at -1% vs. -1%.
The Euro (EUR) had a test above 1.4600 but retraced back to more familiar levels on USD buying in the US session. The market will be closely watching the FOMC decision to work to see if the Euro rally is over. Overall the EUR/USD traded with a low of 1.4524 and a high of 1.4629 before closing the day around 1.4580 in the New York session.
The Japanese Yen (JPY) Yen weakness was reversed as stocks were under slight pressure in the US session and the USD/JPY reversed from above Y82 to new month lows. Overall the USD/JPY traded with a low of 81.62 and a high of 82.44 before closing the day around 81.80 in the New York session.
The Sterling (GBP) pivoted the 1.6500 level in quiet trade with profit taking on rallies the main story. GBP/JPY was especially weak in the US session. Overall the GBP/USD traded with a low of 1.6465 and a high of 1.6552 before closing the day at 1.6480 in the New York session. Looking ahead, April CBI Orders forecast at 3 vs. 5.
The Australian Dollar (AUD) tested support under 1.0700 with gold and silver reversing in the US session and US stocks easing slightly. The outlook is still strong but the market is very overbought currently. Overall the AUD/USD traded with a low of 1.0682 and a high of 1.0777 before closing the day at 1.0710 in the New York session.
Oil & Gold (XAU) the Gold market tested fresh highs but found heavy profit taking in the US session as did Silver. Overall trading with a low of USD$1501 and high of USD $1518 before ending the New York session at USD$1503 an ounce. Crude Oil reversed with the rest of the market but was well supported on middle eastern tensions. WTI Oil Closed -$1.00 at $111.20 a barrel.
