Currency Updates:
U.S. Dollar Trading (USD) solid economic data from the US sent stocks higher until the last few hours of the session which saw heavy selling from a Fitch warning on US banks. Although the warning was generic and well known the market used it as an excuse to sell US banking stocks. October Industrial Output at 0.7% vs. -0.1% previously. In US stocks, DJIA -190 points closing at 11905, S&P -20 points closing at 1236 and NASDAQ -46 points closing at 2639. Looking ahead, Weekly Jobless Claims forecast at 395k vs. 390k previously.
The Euro (EUR) bond jitters moved to France with their 10 yr debt jumping to their highest spread vs German Bonds since the EU came together. The Euro finished under 1.3500 and is looking heavy as action so far to stop the debt crisis have only helped slow the contagion. Targets to the downside include 1.3300 then 1.3000.
The Japanese Yen (JPY) USD/JPY was steady pivoting the Y77 level as the action was kept to the Yen crosses which moved with stocks. EUR/JPY found support at Y103.50 but the market is bearish and could test Y100 which may spark intervention from BOJ to weaken the Yen. BOJ Rate Announcement held at 0.1% as forecast.
The Sterling (GBP) GBP/USD fell to month lows on weak unemployment and bearish stock markets. Q3 Employment fell -197k vs. +25k in Q2. GBP/USD broke 1.5800 and headed to towards the 1.5700 level. EUR/GBP was stable but could break 0.8500 if the Euro crisis continues. Looking ahead, October Retail Sales -0.2% vs. 0.6% m/m.
The Australian Dollar (AUD) the Aussie hit day lows near the end of the Asian session before bouncing in Europe to test 1.0150. The selloff late in the day on the Fitch warning to US banks sent the Aussie back towards parity at 1.0000. The outlook is negative as the Eurozone debt crisis edges towards disaster.
Oil & Gold (XAU) Range Traded between $1760 and $1780 finishing near the bottom on USD strength. Oil was the big mover breaking above $100 a barrel and surging higher to $102.
