Currency Updates:
U.S. Dollar Trading (USD) gained across a number of majors overnight as US share-markets slumped triggering another bout of flight to safety. With a slate of data showing a decline in productivity (Philly Fed 3.6) and a reading of 388K jobless claims, lowest reading in 9 months, investors looked to equity markets once more in order to gage market sentiment. Investors concern that the EU debt crises was spreading from peripheral to key countries were echoed as the S&P fell 1.8%, Dow Jones was lower 1.4%, and the NASDAQ down 1.9%.
The Euro (EUR) rallied for much of the trading day, yet erased all profits in late US session. Spanish and French bond auctions saw yields rise considerably, with Spain recording it highest borrowing cost since 1997, resulting in failed to add to investor confidence as the DAX fell 1.1 %. Negativity in the market ensured the EUR traded from level near 1.3540 to close near 1.3465.
The Japanese Yen (JPY) un-wavered by market volatility trading in an extremely tight range between 76.90 to 77.05
The Sterling (GBP) UK retail sales rose by 0.6% for the month of October, yet failed to prevent the Pound from easing to 1.5740 from levels above 1.5800.
The Australian Dollar (AUD) found support in Asia shortly after having traded at fresh 5 week lows of 0.9975, rebounding to above 1.0100 before investor sentiment turned sour in late US to push the commonwealth currency back near 5 week levels.
Oil & Gold (XAU) Gold plummeted US$54.10 throughout the day as USD security was paramount, before ending the day at $1720.20 (-3%). Oil in similar fashion also fell, although profit taking was largely attributed to the decline as investor looked take advantage of recent moves to near 5 month highs. Oil fell by US$3.77 a barrel to US$98.82
