Currency Updates:
U.S. Dollar Trading (US) Stocks were down in another change of direction with sentiment fickle and once again testing support on many major currency pairs. Weekly Jobless Claims pushed up to 417k vs. 408k previously but is still stable. In US stocks on Friday, DJIA -170 points closing at 11149, S& P -18 points closing at 1159 and NASDAQ -48 points closing at 2419. Looking ahead, Fed Chief Bernanke Speaks at the Jackson Hole Symposium.
The Euro (EUR) tested the bottom of the recent range at 1.4350 with the EUR/USD sold off on German short selling ban rumors which were later denied. German GFK Consumer Confidence dropped with to 5.2 as expected. Looking ahead, German July Import prices gained 0.1% vs. -0.6% m/m previously.
The Japanese Yen (JPY) USD/JPY was strong breaking above Y77 resistance and grinding higher to Y77.50. The outlook now is largely determined on whether the Bernanke’s speech mentions QE3 or any other easing measures to help support the US economy. UPDATE July CPI at 0.2% y/y unchanged.
The Sterling (GBP) Broke below 1.6300 and was under pressure when the German stock market falls on the short selling ban rumors. The market failed to bounce off these levels and entered Asian trade in a very quiet mood. Looking ahead, Q2 GDP forecast at 0.2% Q/Q.
The Australian Dollar (AUD) The Aussie tried to break above 1.0500 but was unable to hold onto the gains and fell back with US stocks later in the day. The AUD/USD has been very quiet given the stock market volatility but is threatening to push higher as AUD/JPY continues to support. RBA Governor Stevens is trying to put a cap on the AUD/USD saying that at 1.1000 the Aussie was getting ahead of itself.
Oil & Gold (XAU) Gold rebounded aggressively up over $70oz from lows. Crude was volatile down $3 a barrel sharply at the start of the US session before recovering and closing above the key $85 level.
