Currency Updates:
U.S. Dollar Trading (US) global stocks fell sharply yesterday with weak US data and concerns about European banks. Aug Philly fed shocked at -30 vs. 3.2 and sent shockwaves throughout the market as the very weak number signals a potential recession. The dollar gained against risk currencies but was under pressure against the soaring safe haven Gold. In US stocks on Friday, DJIA -419 points closing at 10990, S& P -53 points closing at 1140 and NASDAQ -131 points closing at 2380.
The Euro (EUR) the Euro slumped on fears that large banks in the Eurozone were having funding issues. EUR/CHF and EUR/JPY led the major lower which found support at 1.4300 eventually. The ECB is continuing to support bonds in the debt market which is at least containing the debt issue but if a large bank was to fail the contagion may spark a fresh banking crisis in Europe.
The Japanese Yen (JPY) is being kept very contained against the USD with the BOJ verbal intervention support at Y76.50 and safe haven demand capping rallies towards Y77. Crosses were heavier though with AUD/JPY dropping below Y80 and EUR/JPY slipping back below the key Y110. Plenty of range traders are cashing in the on the 10 day 50 pip range on the USD/JPY with well-defined entry and exit points.
The Sterling (GBP) the Pound held up well with the so much risk aversion in the market being supported by EUR/GBP selling. July Retails sales were softer than forecast at 0.2% vs. 0.3% m/m.  The market closed at the 1.6500 handle but could be under pressure if the stock sell off intensifies. Looking ahead, July Public net borrowing forecast at 0.4bn vs. 12.0bn.
The Australian Dollar (AUD) the Aussie fared badly in the US stock crash with sellers pushing the commodity currency back under 1.0400 after testing 1.0600 the day before. AUD/JPY is under pressure and if problems continue the AUD/USD could fall back to parity at 1.0000.
Oil & Gold (XAU) the banking concerns helped Gold surge back to all-time highs above $1800 and then onto $1828 an ounce. Crude Oil crashed with stocks back to $80 a barrel.
