Currency Updates:
U.S. Dollar Trading (USD) had a mixed day being sold against commodities and risk currencies such as the Aussie but remaining on the front foot against the Euro. Stock markets are continuing to rally and this is keeping risk appetite strong in Holiday trading. In US stocks, DJIA +15 points closing at 11533, S& P +7 points closing at 1254 and NASDAQ +6 points closing at 2667. Looking ahead, US Q3 GDP forecast at 2.8% vs. 2.5%. November Home Sales forecast at 4.7m vs. 4.4m previously.
The Euro (EUR) was able to stage a rally in Asia to test 1.3200 after China&rsquo s VP Wang said they would take concrete action to support EU Debt. The market continued to sell rallies however and fell in the US session to fresh month lows under 1.3100. EUR/USD traded with a low of 1.3072 and a high of 1.3203 before closing at 1.3090.
The Japanese Yen (JPY) USD weakness let the Yen strengthen against the major in the Asian session but the losses were contained with support found at Y83.50 and the pair recovered to opening levels. AUD/JPY is continuing to grind higher. Overall the USDJPY traded with a low of 83.48 and a high of 83.98 before closing the day around 83.85 in the New York session.
The Sterling (GBP) was broadly linked with the Euro trading higher in Asian before reversing to fresh monthly lows. November UK Public borrowing increased to GBP22.8bn vs. 8.6BN previously. Concerns about the pace of the UK recovery remain and the 2011 outlook is very mixed. Overall the GBP/USD traded with a low of 1.5434 and a high of 1.5571 before closing the day at 1.5475 in the New York session.
The Australian Dollar (AUD) remained the top choice for risk taking investors trading up to test parity before consolidating just below. EUR/AUD and GBP/AUD continue to trend lower and are adding support. Overall the AUD/USD traded with a low of 0.9916 and a high of 0.9995 before closing the US session at 0.9965.
Oil & Gold (XAU) was subdued but well supported holding above $1380. Overall trading with a low of USD$1380 and high of USD $1392 before ending the New York session at USD$1389 an ounce. Grinded higher to the key $90 a barrel level. WTI Oil Closed +$0.50 at $89.90 a barrel.
