Currency Updates:
U.S. Dollar Trading (US) global stocks continue to weaken into the weekend with sentiment remaining very fragile. Hopes for a relief rally are under pressure with most of the gains seen last week pared back on Thursday and Friday. In US stocks on Friday, DJIA -172 points closing at 10817, S& P -17 points closing at 1123 and NASDAQ -38 points closing at 2341.
The Euro (EUR) the Euro was well supported even in risk aversion with EUR/CHF buying supporting. The buying into the US session was aggressive and caught the market short with a move from 1.4300 to 1.4450. The weakness in US stocks then acted as a drag into the close. The Eurozone debt crisis is now debating the question of Eurobonds as a means of ending the crisis but Germany is opposed to the idea.
The Japanese Yen (JPY) under a lot of attention during Asia on Monday with talk from BOJ Noda that Japan will take bold action on the Yen over the weekend. The USD/JPY tested new fresh lows on Friday under Y76 briefly before surging on intervention fears. The outlook is mixed with most analysts seeing intervention as failing to stop the Yens rise.
The Sterling (GBP) the GBP/USD remained buoyant as the EUR/USD rally helped support on a dips. Resistance at 1.6600 proved strong and the market fell back into the close. EUR/GBP found support under 0.8700 and closed above the figure.
The Australian Dollar (AUD) the market was caught short on the Aussie after such heavy selling on Thursday and we had a short squeeze in Europe back to 1.0480. The gains were pared into the close and more downside is likely if stock markets continue to fall.
Oil & Gold (XAU) Gold surged for fresh record highs on Friday with little resistance until $1880. The extremely overbought precious metal is hard to sell with daily gains. Crude was supported at $80 a barrel and bounced to $82.50.
