Currency Updates:
U.S. Dollar Trading (US) a shocking ADP jobs report combined with a slump in the US manufacturing ISM to send stocks down over 2%. May ADP private payrolls at 38k vs. 177k previously. May ISM Manufacturing dropped to 53.3 vs. 60.4 previously. In US stocks, DJIA -279 points closing at 12290, S& P -30 points closing at 1314 and NASDAQ -66 points closing at 2769. Looking ahead, Weekly Jobless Claims forecast at 415k vs. 424k previously. Also Weekly Crude inventories forecast at -1.7m vs. 0.6m previously.
The Euro (EUR) traded at fresh weekly highs in Europe before slumping on risk aversion due to the sharp fall in US stocks. May PMI Manufacturing fell further on revisions to 54.4 vs. 54.6 initially. EUR/CHF slump towards fresh all-time lows near 1.2000 on continued demand for the safe haven Swiss franc. Overall the EUR/USD traded with a low of 1.4306 and a high of 1.4460 before closing the day around 1.4350 in the New York session. Looking ahead, ECB President Trichet speaks.
The Japanese Yen (JPY) Yen did well from its safe haven status with the market still buying when stock markets fall. USD/JPY broke below Y81 and the key Y80 level is back on the cards if heavy selling comes through on the Yen crosses. Overall the USD/JPY traded with a low of 80.65 and a high of 81.51 before closing the day around 80.90 in the New York session.
The Sterling (GBP) tracked the risk on and off trading falling sharply on a drop in UK May PMI Factory which dropped to 52.1 vs. 54.4 previously. EUR/GBP popped above 0.8800 before reversing. Overall the GBP/USD traded with a low of 1.6422 and a high of 1.6548 before closing the day at 1.6455 in the New York session. Looking ahead, May Construction PMI forecast at 53.6 vs. 53.3.
The Australian Dollar (AUD) reacted to the negativity crunching lower back to 1.6000 before finding support. The Aussie is very closely linked to global investor risk appetite and a further correction could lead to a major unwind. Overall the AUD/USD traded with a low of 1.0592 and a high of 1.0755 before closing the day at 1.0620 in the New York session. Update April Retail Sales at 1.1% vs. 0.4% forecast.
Oil & Gold (XAU) soared for a test of $1450 and although selling pressure came later did well to hold daily gains against the USD. Overall trading with a low of USD$1529 and high of USD $1550 before ending the New York session at USD$1540 an ounce. Oil tracked US stocks to test $100 a barrel. WTI Oil Closed -2.40 at $100.29 a barrel.
