Stocks gain even as US loses 530k Jobs
CURRENCY TRADING SUMMARY – 8th December 2008 (00:30GMT)
·U.S. Dollar Trading (USD) with bad data not having the same effect on stock markets the recent USD rally is losing steam. Helping to keep the Dollar strong though was the large falls in commodities which are suffering in the recessionary environment. US Unemployment data showed a fall of -533K jobs vs. -320K expected. The Unemployment Rate jumped to 6.7% vs. 6.5% previously. In U.S. share markets, the NASDAQ was up 63.75 points (4.41%) and the Dow Jones was up 259 points (3.09%). Crude Oil closed down $2.86 ending the New York session at $40.81 per barrel.
·The Euro (EUR) continued to trade in a range slowly grinding lower and not reacting much to the poor US data. The rally on the Dow into the close saw the 1.27 level regained. German Factory Orders saw a steep fall of -6.1% vs. 0.2% expected. Steep falls in Oil are weighing although not as much as past falls. Overall the EUR/USD traded with a low of 1.2628 and a high of 1.2800 before closing the day at 1.2700. Looking ahead, German October Industrial Production is seen -1.5%% after falling -3.6% previously.
·The Japanese Yen (JPY) trended lower and broke below support at 92 as the US unemployment data was absorbed by the market. Initial stock weakness was reversed though and this helped the USD/JPY to track higher into the close. Most crosses gained on the day as sentiment improved. Overall the USDJPY traded with a low of 91.58 and a high of 93.38 before closing the day around 92.96 in the New York session. UPDATE October Current Account fell -50.1% vs. -48.8% previously.
·The Sterling (GBP) slipped back to 1.45 as initial stock weakness dragged the Pound lower. GBP/JPY buying as stocks reversed helped to boost the cable into the close. Overall the GDP/USD traded with a low of 1.4527 and a high of 1.4752 before closing the day at 1.4680 in the New York session. Looking ahead, November PPI is seen falling -0.4% vs. -0.5% previously.
·The Australian Dollar (AUD) tested 0.6300 before reversing sharply to the upper end of the recent 63-65 trading range. Continued weakness in the commodity complex is limiting the topside whilst a drop in risk aversion is improving sentiment. Overall the AUD/USD traded with a low of 0.6294 and a high of 0.6470 before closing the US session at 0.6435.
·Gold (XAU) came under pressure as all commodities were dragged lower by Oil. Overall trading with a low of USD$741 and high of USD$773 before ending the New York session at USD$755 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2333 |
1.2423 |
1.2725 |
1.2800 |
1.2848 |
|
USD/JPY |
90.93 |
91.59 |
92.75 |
93.39 |
93.47 |
|
GBP/USD |
1.4214 |
1.4468 |
1.4700 |
1.4753 |
1.4815 |
|
AUD/USD |
0.6232 |
0.6291 |
0.6470 |
0.6487 |
.6534 |
|
XAU/USD |
725.00 |
741.53 |
758.00 |
786.00 |
830.00 |
·Euro – 1.2725
Initial support at 1.2423 (Nov 21 reaction low) followed by 1.2333 (Oct 28 low). Initial resistance is now located at 1.2800 (Dec 5 low) at followed by 1.2848 (Nov 27 high)
·Yen – 92.75
Initial support is located at 91.59 (Dec 5 low) followed by 90.93 (Oct 24 low). Initial resistance is now at 93.39 (Dec 5 high) followed by 93.47 (Dec 4 high).
·Pound – 1.4700
Initial support at 1.4468 (Dec 4 trend low) followed by 1.4214 (Range projection). Initial resistance is now at 1.4753 (Dec 5 high) followed by 1.4815 (Dec 4 high).
·Australian Dollar – 0.6470
Initial support at 0.63291 (Dec 5 low) followed by the 0.6232 (Nov 24 low). Initial resistance is now at 0.6487 (Dec 5 high) followed by 0.6536 (Dec 4 high).
·Gold – 758
Initial support at 741 (Dec 5 low) followed by 725.4 (Nov 14 low). Initial resistance is now at 786.50 (Dec 2 high) followed by 830 (Nov 25 high).
