Currency Updates:
U.S. Dollar Trading (USD) a slight reprieve was seen around the world with European and US stocks reporting modest gains. The FOMC held at 0.25% but Fed Chief Bernanke did signal the bank was able to support the economy if growth faltered and that Housing asset purchases were possible. In US stocks, DJIA +178 points closing at 11836, S& P +19 points closing at 1237 and NASDAQ +33 points closing at 2639. Looking ahead, Weekly Jobless Claims forecast at 400k vs. 402k previously. G20 meeting starts today.
The Euro (EUR) The fallout from the referendum burst back onto the main stage at the end of the US session after Merkal/Sarkozy sounded a warning that not accepting the Oct 27 bailout plan would result in Greece leaving the EU. The referendum has been brought forward to the relatively close date of Dec 4. Looking ahead, ECB rate meeting forecast to hold at 1.5% and New President Draghi first meeting.
The Japanese Yen (JPY) USD/JPY was very stable at the Y78 level with the action left to the crosses with most gaining on the day as stocks bounced. The G20 starts today and the recent intervention may be on the agenda as Japan complains about its recent strength.
The Sterling (GBP) volatility continued with GBP/USD reclaiming 1.6000 in Europe before easing into the US session as EUR/GBP buying depressed the Cable. The post Merkal/Sarkozy meeting saw further sharp selling under the 1.5900 level. Looking ahead, BOE Governor King Speaks.
The Australian Dollar (AUD) The AUD/USD rebounded with stocks but struggled above 1.0400 and we saw more heavy selling after the EU/Greece meetings earlier this morning on Thursday. AUD/JPY is hold above the key Y80 level for now but further stock losses could see the level tested. UPDATE September Retail Sales were stable at 0.4% vs. 0.6% previously.
Oil & Gold (XAU) Gold rallied for a second day but pared back gains to finish unchanged. Oil spent a lot of the day at the $93 level but finished under pressure.
