Currency Updates:
U.S. Dollar Trading (USD) US traders jumped upon the European rally extending for one of the largest rallies on record with most banks +10% as EU debt fears eased. Q3 GDP came in as forecast at 2.5% annualized and this further helped sentiment in the US session. In US stocks, DJIA +339 points closing at 12208, S& P +42 points closing at 1284 and NASDAQ +87 points closing at 2738. Looking ahead, University of Michigan Consumer expectations forecast at 74.1 vs. 73.8 previously.
The Euro (EUR) EUR/USD broke above 1.4000 in Early Europe and didn&rsquo t look back surging higher to above 1.4200 in the US session. The large gains came as European Debt fears subsided and allowed most crosses to gain including the EUR/GBP which broke above 0.8800 in aggressive trading. EUR/JPY tested Y108 before finding resistance.
The Japanese Yen (JPY) was little changed against the USD as both were sold in risk on trading. USD/JPY traded in a 20 pip range and was unaffected by the BOJ announcements of further easing measures or by Finance Minister Azumi&rsquo s Jawboning. AUD/JPY broke above the key Y80 level is looking to extend gains as investors flood back into the risk trade.
The Sterling (GBP) underperformed against the USD and on the crosses with traders wary at buying the beleaguered pound while they can express risk through the Euro or the AUD. EUR/GBP suffered a sharp move high and GBP/USD struggled above 1.6000 although it did close up above 1.6100 after US stock gains overwhelmed sellers.
The Australian Dollar (AUD) was the currency of choice as US stocks soared 3% the AUD/USD broke above 1.0500 surging to 1.0750 before stalling and consolidating lower. AUD/JPY broke above Y80 and AUD/NZD broke above 1.3000. The RBA rate meeting next week is now in focus and could see AUD selling pressure if they cut rates.
Oil & Gold (XAU) Gold moved higher on the USD weakness testing $1750 resistance. Oil Moved back to $94 with stock markets helping lift the energy higher. $100 is now forming as the bull target if sentiment continues to improve.
