Currency Updates:
U.S. Dollar Trading (US) saw day highs in early Europe ahead for the EU summit announcement on Greece which reversed risk appetite and sparked a global equity rally. Weekly Jobless claims came in at 418k vs. 405k previously but July Philly Fed rebounded to +3.2 vs. -7.7 previously. In US stocks, DJIA +152 points closing at 12724, S& P +17 points closing at 1343 and NASDAQ +20 points closing at 2834.
The Euro (EUR) fell to 1.4150 in early European trade before staging a remarkably rally on the Greece plan announcement and trading above 1.4400. EUR/JPY and EUR/GBP both enjoyed good gains in a broad Euro rally. In addition to assisting Greece we saw interest rates on loans on Ireland and Portugal lowered to help their ability to repay. Overall the EUR/USD traded with a low of 1.4137 and a high of 1.4439 before closing the day around 1.4410 in the New York session. Looking ahead, German IFO forecast at 113.8 vs. 114.5 previously.
The Japanese Yen (JPY) gained against the USD but was very weak against the crosses as stocks markets surged. EUR/JPY rallied above Y113 and could be poised for further gains after finding support at Y110 and the EU debt agreement was reached. Overall the USD/JPY traded with a low of 78.21 and a high of 79.05 before closing the day around 78.50 in the New York session.
The Sterling (GBP) broke out of the range to the topside and surged to 1.6300 before stabilizing in the close. EUR/GBP climbed back above 0.8800 as the Euro outperformed. June Retail Sales were strong at 0.7% vs. -1.3% previously. Overall the GBP/USD traded with a low of 1.6119 and a high of 1.6344 before closing the day at 1.6325 in the New York session.
The Australian Dollar (AUD) broke above resistance at 1.0800 as risk appetite surged post EU summit plan and is looking to 1.1000 in coming days. AUD/JPY is back above Y85 and is an important cross for providing fresh direction to the major. Overall the AUD/USD traded with a low of 1.0692 and a high of 1.0844 before closing the day at 1.0825 in the New York session.
Oil & Gold (XAU) the market sold the alternative currency Gold on easing sovereign debt fears Overall trading with a low of USD$1584 and high of USD $1604 before ending the New York session at USD$1590 an ounce. Oil broke out of the range to the topside above $99 and is within striking distance of $100. WTI Oil Closed +$0.73 at $99.10 a barrel.
