Currency Updates:
U.S. Dollar Trading (USD) lost ground as bulls took back control and lifted stocks, commodities and most FX majors higher. The market found support from solid Chinese trade data and news of a major M& A deal. US Imports Prices increase 2.2% m/m to 11.1% y/y as commodity prices lift import costs. In US stocks, DJIA +75 points closing at 12760, S& P +10 points closing at 1357 and NASDAQ +28 points closing at 2871. Looking ahead, March Trade Balance forecast at -47bn vs. -45.8bn previously.
The Euro (EUR) was able to recover from recent heavy selling finding support under 1.4300 and closing above 1.4400 as fears about Greece subsided. Good EUR/JPY buying on the back of risk on trading helped underpin the move higher. Overall the EUR/USD traded with a low of 1.4269 and a high of 1.4415 before closing the day around 1.4410 in the New York session. Looking ahead, April German CPI forecast at 0.2% vs. 0.2% previously m/m.
The Japanese Yen (JPY) the USD/JPY pushed to topside resistance at Y81 and is threatening to break higher with stronger Yen crosses. The outlook for the major will be closely linked with US data and stock markets with any double dip talk leading to more downside pressure. Overall the USD/JPY traded with a low of 80.14 and a high of 80.90 before closing the day around 80.80 in the New York session.
The Sterling (GBP) failed to track the rest of the market underperforming on strong EUR/GBP buying. The important cross edged back above 0.8800. GBP/JPY fared better ending above Y132 and looking to confirm a bottom has been put in place. Overall the GBP/USD traded with a low of 1.6314 and a high of 1.6424 before closing the day at 1.6370 in the New York session. March Trade Balance forecast at -7.25bn vs. 6.78bn.
The Australian Dollar (AUD) was very strong rallying after impressive March Trade balance numbers (1.7bn vs. 0.4bn Forecast) and a positive change in investor sentiment. Resistance at 1.0800 was broken and tested 1.0850 by the US close. Overall the AUD/USD traded with a low of 1.0735 and a high of 1.0851 before closing the day at 1.0740 in the New York session.
Oil & Gold (XAU) crept higher with buyers still looking to hedge against inflation and a weak USD. Overall trading with a low of USD$1505 and high of USD $1520 before ending the New York session at USD$1517 an ounce. The uptrend continued with a pull back to $100 provided a platform to launch above $103. WTI Oil Closed +$1.33 at $103.88 a barrel.
