Currency Updates:
U.S. Dollar Trading (USD) heavy stock market losses helped the Dollar to safe haven strength across the board. Weekly Jobless Claims disappointed at 397k vs. 369k previously. Oil fell back on heavy profit taking but spiked higher near the US close on rumors of Saudi unrest. In US stocks, DJIA -228 points closing at 12213, S& P -24 points closing at 1295 and NASDAQ -50 points closing at 2701. Looking ahead, February Retail Sales forecast at 1 % vs. 0.3% previously.
The Euro (EUR) was hit hard in Europe as Moody&rsquo s downgraded Spain and increased the estimated loan losses. Also weighing on the pair was German Trade balance which dropped to 1.2bn vs. 13.7bn previously. Overall the EUR/USD traded with a low of 1.3774 and a high of 1.3926 before closing the day around 1.3810 in the New York session. Looking ahead, February German CPI forecast at 0.5%.
The Japanese Yen (JPY) broke above Y83 on the strong USD demand but most crosses tracked the stock markets lower with EUR/JPY leading the pack. The outlook for many pairs is closely linked to the stock market performance which could be starting a correction given the size of the move yesterday. Overall the USD/JPY traded with a low of 82.68 and a high of 83.19 before closing the day around 82.80 in the New York session.
The Sterling (GBP) BOE Rate held at 0.5% as expected and the market quickly looked to the other factors such as the stock market plunge and Euro weakness to guide the Pound lower. Overall the GBP/USD traded with a low of 1.6037 and a high of 1.6216 before closing the day at 1.6070 in the New York session. Looking ahead, February PPI forecast at +1.5% vs. +1.7%.
The Australian Dollar (AUD) sentiment was hurt in the Asia with a -10k February Jobs reports vs. +20k forecast. Adding extra weight to the selling was the surprise Chinese trade deficit with the market focusing attention on the giant Asian economy which has major trade links to Australia. Overall the AUD/USD traded with a low of 0.9988 and a high of 1.0120 before closing the day at 1.0020 in the New York session.
Oil & Gold (XAU) Gold fell heavily on USD strength. Overall trading with a low of USD$1402 and high of USD $1431 before ending the New York session at USD$1415 an ounce. Fell sharply on profit taking but was volatile at the end of the day with fresh Saudi protest rumors prompting a brief spike higher. WTI Oil Closed -$2.10 at $102.28 a barrel.
