Currency Updates:
U.S. Dollar Trading (US) stocks continue to pick up with hurricane Irene avoiding heavy damage and weekend speculation in the press that more FED easing will be on the way if the US economy falters. In US stocks on Friday, DJIA +254 points closing at 11539, S& P +33 points closing at 1210 and NASDAQ +82 points closing at 2562. Looking ahead, August FOMC Minutes. June Case Shiller 0.6% vs. 1% previously.
The Euro (EUR) was mixed with support from strong stocks and talk of a radical recapitalization plan for European banks. This was tempered by talk of political resistance to European bailouts in Germany and Court challenges to the current bailouts proposed. Looking ahead, August Business Climate forecast at 0.15 vs. 0.45 previously.
The Japanese Yen (JPY) the USD/JPY was quiet in the recent range but headed towards Y77 on the back of heavy buying in EUR/JPY and AUD/JPY. The big news in Japan is that Noda may be the new PM and is seen as continuing his current policy towards verbal intervention in the Yen.
The Sterling (GBP) GBP/USD was strong grinding above 1.6400 and gaining against the lackluster Euro. GBP/AUD however fell back to with stock markets proving plenty of support for the high yielding Aussie. Looking ahead, July Mortgage Approvals forecast at 49k vs. 48.4k previously.
The Australian Dollar (AUD) the Aussie broke above 1.0600 in Asia and tracked stocks higher in Europe and the US session to close on a solid footing threatening more gains. The AUD/JPY was strong taking out Y82 and providing plenty of support for the major. UPDATE July Building Permits at 1% vs. -3.5% previously.
Oil & Gold (XAU) Gold slumped through $1800 at the start of the US session before stabilizing at the $1790 level. Crude Oil extended gains to the $87 level with the positive investor mood supporting.
