Currency Updates:
U.S. Dollar Trading (USD) a mild G20 statement was trumped by European Debt concerns sending stocks and commodities lower. The USD was the main beneficiary from the European mess although it finished well off highs as Ireland denied bailout talks. In US stocks, DJIA -90 points closing at 11192, S& P -14 points closing at 1199 and NASDAQ -37 points closing at 2518. Looking ahead, October Retail Sales are forecast at +0.7% vs. +0.6%.
The Euro (EUR) broke below 1.3600 at the height of Irish concerns going into the European session but when the Irish FM denied asking for help the pair staged a major rally nearly 200 pips. Q3 GDP was near expectations at 0.4% but the September Industrial Production printed weak numbers at -0.9% m/m. EUR/USD traded with a low of 1.3575 and a high of 1.3777 before closing at 1.3699. Looking ahead, September Trade Balance is forecast at 0.3Bn vs. -4.3bn previously.
The Japanese Yen (JPY) the dip on the major was bought back up with the market looking to test topside resistance at Y83. AUD/JPY was hurt hard as the risk sensitive currency tracked stock markets lower. GBP/JPY continued to be well supported. Overall the USDJPY traded with a low of 81.66 and a high of 82.65 before closing the day around 82.43 in the New York session. UPDATE Q3 GDP at 0.9% vs. 0.6% forecast.
The Sterling (GBP) a slight pull back in October Consumer Confidence did little to help the market in risk off mode going into Europe with Cable testing 1.6000 before bouncing into the Weekend. EUR/GBP also bounced with the Euro selling seen as overdone in recent sessions. Overall the GBP/USD traded with a low of 1.5988 and a high of 1.6183 before closing the day at 1.6139 in the New York session.
The Australian Dollar (AUD) the downside test came in hard for the Aussie on Friday as longs all tried to exit at once and a test of 1.0000 failed in the Asian session. Support was found in the lower 0.9800 levels but with stocks and commodities also testing downside the possibility of further losses remains high. Overall the AUD/USD traded with a low of 0.9826 and a high of 1.0099 before closing the US session at 0.9866.
Oil & Gold (XAU) major downside moves where seen on heavy unwinding of long positions. Overall trading with a low of USD$1360 and high of USD $1395 before ending the New York session at USD$1370 an ounce. Oil Crashed through $85 support on China tightening concerns. WTI Oil Closed -$2.93 at $84.88 a barrel.
