Currency Updates:
U.S. Dollar Trading (US) US stocks tumbled 500 points as concerns about French banks led to market wide panic and a reversal of the positive rally the day before. Gold surged to fresh record highs and banking stocks around the world came under heavy pressure. In US stocks on Friday, DJIA -519 points closing at 10719, S& P -51 points closing at 1120 and NASDAQ -101 points closing at 2381. Looking ahead, Weekly Jobless Claims forecast at 400k. June Trade Balance forecast at -38bn vs. -50bn previously.
The Euro (EUR) was under heavy selling pressure for most of the day with the Eurozone Debt Crisis spreading to France where rumors of a downgrade spilled over to French banks which lost over 10% in share price. The Major slipped from 1.4400 in Asia to 1.4150 in late US trade with EUR/JPY and EUR/CHF also very heavy.
The Japanese Yen (JPY) the market remained heavy for most of the day with little follow through from the large Dow rally and then cross selling with the US stock market collapse. The market has been selling from Y80 on a daily basis with the market searching for the level which the BOJ will intervene once again.
The Sterling (GBP) a 4th day of riots is weighing on the GBP which fell quit heavily in Europe and then in the US session on risk aversion and weak data. BOE Governor King downgraded the central banks economic outlook but did remain confident inflation will drop. Support was found at 1.6100 and EUR/GBP reversed from a spike higher in Europe to finish under 0.8800.
The Australian Dollar (AUD) the Aussie came under heavy selling pressure in the European and the US session with the volatile stock markets creating havoc for traders with support and resistances seemingly nonexistent. AUD/JPY fell back under Y78 and is still under pressure. UPDATE JULY Employment Change -0.1k vs. 10k forecast. July Unemployment Rate at 5.1% vs. 4.9% previously.
Oil & Gold (XAU) Gold surge on French bank fears breaking above $1800 and hitting fresh all time highs at $1815. Crude bounced off $80 and rallied back to $83 with the stock market moves strangely ignored.
