Currency Updates:
U.S. Dollar Trading (US) a better than expected Aug ISM manufacturing Survey at 50.6 above the expansionary 50 level sent stocks to day highs at the start of the US session. The stocks then started to pull back and finished quite negative going into the US jobs data which is a major risk event. In US stocks on Friday, DJIA -119 points closing at 11493, S& P -14 points closing at 1204 and NASDAQ -33 points closing at 2546. Looking ahead, August Non Payrolls forecast at 75 vs. 117k previously. August Employment rate forecast at 9.1%.
The Euro (EUR) the euro searched for support under 1.4300. The market then consolidated into the close ahead of today& rsquo s US data. A poor Spanish Bond auction kept the sentiment poor. August Manufacturing PMI slipped to 49.0 vs. 49.7 previously. German Q2 GDP remained at 0.1%. Looking ahead, July PPI forecast 0.5% vs. 0.0% previously.
The Japanese Yen (JPY) tested resistance above Y77 a few times on strong US data but fell back under the level into the US close as stock losses accelerated. EUR/JPY and GBP/JPY were very heavy as their down trend continued for a third day. USD/JPY is always a major mover on US jobs data and tonight should prove no different.
The Sterling (GBP) fell sharply in the US session down under 1.6200 and finding support in the lower 1.6100 area before grinding higher into the close. EUR/GBP fell back towards 0.8800 on Euro weakness and could support the GBP/USD if the selling continues.   Looking ahead, August Services PMI forecast at 52.6 vs. 53.6 previously.
The Australian Dollar (AUD) the Aussie outperformed the rest of the market with strong economic data and good Chinese PMI data providing plenty of support even as stock markets fell. Resistance at 1.0720 broke in the European session before running out of steam and consolidating above the figure.
Oil & Gold (XAU) Gold stayed in the previous day range falling to $1812 before finished unchanged at $1826. Crude tested above $89 on news that two new storms threatened production in the Gulf.
