Currency Updates:
U.S. Dollar Trading (US) most risk assets popped higher late in the US session on the back of bank stocks rallying. The further downgrade of Greece produced little reaction in the market with most of Europe and Asia on Holiday. In US stocks, DJIA +1 points closing at 11952, S& P +1 points closing at 1271 and NASDAQ -4 points closing at 2639. Looking ahead, May Retail Sales forecast at -0.4% vs. 0.5%. May PPI forecast at 0.1% vs. 0.8% previously.
The Euro (EUR) was able to rally even as Greece was downgraded to the lowest possible rating with the slew of recent downgrades no longer having a major impact. The rally late in the day on US stocks allowed short covering back above 1.4400 but the outlook is still very negative while so many issues remain unresolved. Overall the EUR/USD traded with a low of 1.4321 and a high of 1.4431 before closing the day around 1.4410 in the New York session.
The Japanese Yen (JPY) was able to push higher in the Asian session on the major before reversing back down to Y80 in Dollar weakness late in the day. Most crosses ended slightly higher on the positive bounce off lows in stock markets. EUR/JPY is a very important cross and has been under heavy selling pressure in recent sessions. Overall the USD/JPY traded with a low of 80.07 and a high of 80.70 before closing the day around 80.20 in the New York session. Looking ahead, BOJ Rate Announcement forecast to hold at 0.1%.
The Sterling (GBP) was well supported not just on EUR/GBP selling but on broad support for the Pound having a rare positive day. Some Support was seen on comments from BOE Weale that a preemptive rate hike now would help the central bank achieve inflation targets later. Overall the GBP/USD traded with a low of 1.6219 and a high of 1.6392 before closing the day at 1.6415 in the New York session. Looking ahead, May CPI is forecast at 0.2% vs. 1% previously.
The Australian Dollar (AUD) was quiet in holiday mode in Asia in Europe before snapping higher with the US stock market bounce late in the day. The outlook is closely tied with global stocks markets and how well the Chinese economy can weather its own economic challenges. Overall the AUD/USD traded with a low of 1.0527 and a high of 1.0639 before closing the day at 1.0610 in the New York session. UPDATE Chinese CPI at 5.5% vs. 5.3% previously.
Oil & Gold (XAU) slumped for a second day as most commodities came under pressure. Overall trading with a low of USD$1510 and high of USD $1533 before ending the New York session at USD$1517 an ounce. Oil fell sharply breaking $98 support with heavy profit taking. WTI Oil Closed -1.90 at $97.30 a barrel.
