Currency Updates:
U.S. Dollar Trading (US) stock markets enjoyed good gains overnight with hopes increasing of   fresh efforts from France/Germany to bailout smaller European Countries. ECB Member Barroso suggested that Eurobonds will be proposed and this sparked a rally that continued into the US session. The USD was sold with traders looking for more risk and dumping the safe haven. In US stocks, DJIA +140 points closing at 11246, S& P +15 points closing at 1188 and NASDAQ +40 points closing at 2572. Looking ahead, Weekly Jobless Claims forecast at 410k vs. 414k previously.
The Euro (EUR) took heart from the positive comments from European leaders and the Eurobond suggestion to rally above 1.3750. The market will now be looking ahead to Moody& rsquo s Italian rating decision and the EU Finance ministers meeting for further news on the debt crisis. Looking ahead, SNB rate decision and Statement. Also, August Inflation Forecast at 0.2% vs. -0.6% m/m.
The Japanese Yen (JPY) kept to a tight range under Y77 with US data having little effect and the slight downside pressure more a symptom of USD weakness. Crosses were strong on the US stocks rally and able to rebound off the weakness seen in Asia early yesterday.
The Sterling (GBP) the GBP/USD hit day lows going into Europe with French bank downgrades and cautious China comments caused fresh waves of risk aversion. The rebound with European and US stocks looked fragile and unconvincing with the downtrend starting to take control. Looking forward, August Retail Sales forecast at -0.3% vs. 0.2% previously.
The Australian Dollar (AUD) the Aussie was the weakest currency in the market yesterday after the ABS released revised lower inflation numbers. The revision takes pressure off the RBA to hike rates and now the louder talk in the market is for rate cuts as employment data comes in weaker than expected. UPDATE New Zealand Rate decision hold at 2.5%. NZD/USD fell on comments from Central bank that the high NZD is having a dampening influence on the economy.
Oil & Gold (XAU) Gold was sold after rallying to $1845 earlier in the day and fell back to $1810 supports. Crude Oil came under profit taking falling back to $88 but holding and consolidating above the support level.
