Currency Updates:
U.S. Dollar Trading (USD) a very large successful GM IPO and positive developments regarding the Irish EU/IMF Bailout. The Mood change began in Asia with stocks then beginning a 24hour global stock market rally. November Philadelphia Fed jumped to 22 vs. 5 forecast. In US stocks, DJIA +173 points closing at 11181, S& P +18 points closing at 1196 and NASDAQ +38 points closing at 2514. Looking ahead, Fed Chief Bernanke Speaks.
The Euro (EUR) jumped higher on speculation Ireland would be forced to accept bailout funds. ECB member and Irish Central Bank Head Honohan said the expected Ireland to receive a loan worth tens of billions. EUR/USD traded with a low of 1.3540 and a high of 1.3669 before closing at 1.3640. Looking ahead, ECB President Trichet speaks today.
The Japanese Yen (JPY) popped higher on the very good US Philly Fed numbers to fresh month highs above Y83.80. The market is beginning to focus on the topside with improving US data and improving risk sentiment helping the Yen Crosses rally. Overall the USDJPY traded with a low of 83.08 and a high of 83.81 before closing the day around 83.55 in the New York session.
The Sterling (GBP) Solid economic data and risk on environment helped Cable rally back above the key 1.6000 level. GBP/JPY surge past Y134 as October Retail Sales jumped 0.5% m/m. The CBI November Industrial trends Survey improved to -15 from -28 previously. Overall the GBP/USD traded with a low of 1.5886 and a high of 1.6058 before closing the day at 1.6040 in the New York session.
The Australian Dollar (AUD) tracked the improvement in investor sentiment to reclaim 0.9900. AUD/JPY in particular was strong pushing above Y82.50. The market will be watching to see if the Aussie can resume its uptrend or whether parity will remain a short term barrier. Overall the AUD/USD traded with a low of 0.9805 and a high of 0.9908 before closing the US session at 0.9880.
Oil & Gold (XAU) Gold rallied sharply up $20 an ounce. Overall trading with a low of USD$1340 and high of USD $1363 before ending the New York session at USD$1360 an ounce. Oil jumped with most commodities testing $82 a barrel. WTI Oil Closed +$1.48 at $81.92 a barrel.
