Currency Updates:
U.S. Dollar Trading (US) US stocks fell sharply unimpressed with jobs talk from Obama and as Greece came back into the headlines after ECB board member Stark resigned in opposition to the ECB bond buying operations. The USD is gaining broadly as the safe haven of choice after CHF and YEN intervention fears propelled it to the top of the list. In US stocks, DJIA -303 points closing at 10992, S& P -31 points closing at 1154 and NASDAQ -61 points closing at 2467. Looking ahead, FOMC Member Fisher speaks.
The Euro (EUR) articles emerged talking about German officials looking to sure up local banks in the event that Greece goes bankrupt. EUR/USD slumped under 1.3700 with little support from crosses except the EUR/CHF which continued to hold above 1.2000. August German CPI increased to 2.4% vs. 2.3% previously. Looking ahead, Italian Industrial Production forecast at 0.2% vs. -0.6% previously.
The Japanese Yen (JPY) the USD/JPY moved lower in the US session on sharp EUR/JPY selling after talk of a Greece default swept the market. Support was found at Y77 on the major and under Y106 on the EUR/JPY which is now targeting Y100 as potential level the BOJ may intervene similar to the Swiss.
The Sterling (GBP) The GBP was under pressure against the USD but held up well against most risk currencies with EUR/GBP selling supporting and GBP/AUD sharply higher. Cable found support at 1.5850 but a downtrend looks to be forming and if the situation in Europe deteriorates then 1.55 is possible in coming sessions.
The Australian Dollar (AUD) The AUD/USD was already on a fragile footing after weak jobs data on Thursday and the sharp risk sell off sent the commodity currency below 1.0500 and AUD/JPY sharply lower towards the key Y80 pivot. The outlook is linked to the Eurozone debt crisis and another potential collapse is keeping traders on their toes in the coming sessions.
Oil & Gold (XAU) Gold was supported on the EU debt issue but the USD is also receiving plenty of support and this kept the precious metal range trading. Crude Oil slumped with US stocks to back under $87 a barrel.
