Stocks Bounce as Oil bounces on OPEC Cuts
CURRENCY TRADING SUMMARY – 24th October 2008 (00:30GMT)
·U.S. Dollar Trading (USD) gained across the board until the final moments of US trading when the Dow shot up 5% on the back of surging Oil and Gold. The US gave up a lot of its gains but manages to pare losses against the JPY. On the data front weekly jobless claims were slightly above expectations at 480K vs. 470K. In the U.S. share markets, the NASDAQ was down 11 points (-0.72%) and the Dow Jones was up 172 points (2.02%). Crude Oil closed up $1.09 ending the New York session at $67.84 per barrel. Looking ahead, September Home Sales are expected at 4.93 vs. 4.91 previously.
·The Euro (EUR) retested yesterday’s low and although this level held firm it was under pressure. The late Dow rally inspired the Euro surge and retest of 1.3000 in early Asia. August Industrial Orders were weaker than expected at -1.2% vs. 0.3% forecast. Also released the Eurozone Current account in August at -7.9 Billion vs. -1.1 previously. Overall the EUR/USD traded with a low of 1.2735 and a high of 1.3006 before closing the day at 1.2935 in the New York session. Looking ahead, Eurozone Services PMI at 47 vs. 48.4 and Manufacturing 44 vs. 45 previously.
·The Japanese Yen (JPY) plumbed new month highs last night as stocks and sentiment turned south. The gains where broad based being particular sharp against the EURO and GBP. The late rally in the Dow prompted short covering which turned into a rally as EUR/JPY surged over 400 pips. Overall the USDJPY traded with a low of 95.96 and a high of 98.31 before closing the day around 97.70 in the New York session.
·The Sterling (GBP) came under severe pressure during the European session as Stocks reversed some early gains and plumbed new depths. 1.6000 proved a little too far and the pair consolidated at the lows. The late Dow Rally pushed the pair back to day highs. UK September Retails Sales fell -0.4% vs. -0.9% expected. Overall the GDP/USD traded with a low of 1.6044 and a high of 1.6346 before closing the day at 1.6175 in the New York session. Looking ahead, Q3 GDP expected at -0.2% vs. 0.0% previously
·The Australian Dollar (AUD) finally fell to the pressure of weak stocks and commodities breaking through 0.6600 as AUD/JPY sales pressure the Aussie lower. A late Oil spike lead the DOW surge higher saw the AUD soar from day lows to highs. Overall the AUD/USD traded with a low of 0.6529 and a high of 0.6750 before closing the US session at 0.6750.
·Gold (XAU) bounced off $700 an ounce at the height of USD strength before bouncing hard with Oil and Stocks. Overall trading with a low of USD$699.95 and high of USD$734 before ending the New York session at USD$722 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2683 |
1.2729 |
1.2895 |
1.3078 |
1.3359 |
|
USD/JPY |
95.76 |
96.85 |
97.50 |
100.57 |
102.41 |
|
GBP/USD |
1.6000 |
1.6042 |
1.6180 |
1.6717 |
1.7198 |
|
AUD/USD |
0.6496 |
0.6529 |
0.6685 |
0.7076 |
0.7239 |
|
XAU/USD |
692.38 |
698.54 |
726.00 |
775.75 |
803.00 |
·Euro – 1.2895
Initial support at 1.2729 (Oct 23 low) followed by 1.2683 (Nov 3 2006). Initial resistance is now located at 1.3078 (Oct 22 high) at followed by 1.3359 (Oct 21 high).
·Yen – 97.50
Initial support is located at 96.85 (Mar 18 low) followed by 95.76 (Mar 17 low). Initial resistance is now at 100.57 (Oct 22 high) followed by 102.41 (Oct 20 high).
·Pound – 1.6180
Initial support at 1.6043 (Oct 23 low) followed by 1.6000 (Key level). Initial resistance is now at 1.6717 (Oct 22 high) followed by 1.7168 (Oct 21 high).
·Australian Dollar – 0.6685
Initial support at 0.6529 (Oct 29 low) followed by the 0.6496 (Oct 16 low). Initial resistance is now at 0.7076 (Oct 15 high) followed by 0.7239 (Oct 14 high).
·Gold – 726
Initial support at 698.54 (Oct 23 low) followed by 692.38 (Sep 7, 2007). Initial resistance is now at 775.75 (Oct 22 high) followed by 803 (Oct 21 high).
