Currency Updates:
U.S. Dollar Trading (US) US stocks continued to fall overnight with the weak Jobs data continuing to dampen sentiment. This Dollar gained through safe haven buying with risk assets sold including commodities. Fed Member Fisher commented QE3 would require very high hurdles to activate. In US stocks, DJIA -61 points closing at 12090, S& P -13 points closing at 1286 and NASDAQ -30 points closing at 2702. Looking ahead, FED Chairman Ben Bernanke speaks.
The Euro (EUR) came under pressure with uncertainty regarding the final bailout package for Greece inspiring profit taking from Friday&rsquo s rally. June Sentix slumped to 3.5 vs. 0.9 previously. The market listed Overall the EUR/USD traded with a low of 1.4556 and a high of 1.4659 before closing the day around 1.4585 in the New York session. Looking ahead, April Retail Sales forecast at 0.4% vs. -1% m/m.
The Japanese Yen (JPY) the USD/JPY tested Y80 a few times in Europe but the level held firm before a small bounce towards opening levels. EUR/JPY selling added pressure but could also save the major with the uptrend providing support for USD/JPY. Overall the USD/JPY traded with a low of 79.96 and a high of 80.41 before closing the day around 80.20 in the New York session.
The Sterling (GBP) was very calm but pressured to the downside with the general risk off mood in the market. EUR/GBP tried to extend gains but failed to push much further into the 0.8900 region. The outlook is mixed to negative given the tough austerity measures announced by the government. Overall the GBP/USD traded with a low of 1.6284 and a high of 1.6438 before closing the day at 1.6430 in the New York session.
The Australian Dollar (AUD) fell back with the Euro and pressure from weak commodities. Support was found under 1.0700 and the market ended at opening levels. The RBA is ahead and could provide direction from the statement accompanying. Overall the AUD/USD traded with a low of 1.0690 and a high of 1.0769 before closing the day at 1.0725 in the New York session. Looking ahead, RBA announcement forecast unchanged at 4.75%.
Oil & Gold (XAU) moved another level higher testing above $1550 before falling back late in the day. Overall trading with a low of USD$1540 and high of USD $1553 before ending the New York session at USD$1544 an ounce. Oil fell back under $99 on concerns about global demand. WTI Oil Closed -1.21 at $99.01 a barrel.
