Currency Updates:
U.S. Dollar Trading (USD) was under pressure against all currencies except the Yen as markets around the world extended Friday&rsquo s rally. Oil spiked higher on Monday morning after the Libyan bombing by allied forces to enforce a no fly zone over the weekend. February Existing Home Sales fell -9.6%. In US stocks, DJIA +178 points closing at 12036, S& P +19 points closing at 1298 and NASDAQ +48 points closing at 2692. Looking ahead, US Treasury Secretary Speaks.
The Euro (EUR) pushed above 1.4200 as the market turned risk on and punished the USD. EUR/JPY is providing lots of support and could continue to break higher if more intervention emerges. Market expectations of a rate rise at the next ECB meeting are firming as more members make hawkish inflation fighting comments. Overall the EUR/USD traded with a low of 1.4135 and a high of 1.4242 before closing the day around 1.4215 in the New York session.
The Japanese Yen (JPY) consolidated above Y80.80 and grinded higher as the Yen remained weak across the board. EUR/JPY and AUD/JPY led the crosses higher as they tracked stock markets and their respective majors. Fears of further intervention is keeping Yen buyers very cautious. Overall the USD/JPY traded with a low of 80.80 and a high of 81.34 before closing the day around 80.15 in the New York session.
The Sterling (GBP) moved higher above 1.6300 where in consolidated in quiet trade. EUR/GBP fell from profit taking at 0.8740 to 0.8710. The market outlook is turning bullish on cable as risk appetite picks up and     a short term bottom is put into place. Overall the GBP/USD traded with a low of 1.6202 and a high of 1.6331 before closing the day at 1.6310 in the New York session.
The Australian Dollar (AUD) back above parity as buyers took control and AUD/JPY flows provided steady upside movement. The high yielding Aussie dollar is well positioned to benefit from higher commodities and strong equity markets. Overall the AUD/USD traded with a low of 0.9951 and a high of 1.0072 before closing the day at 1.0045 in the New York session.
Oil & Gold (XAU) gapped higher on geopolitical safe haven buying but was quiet for the rest of the day. Overall trading with a low of USD$1423 and high of USD $1435 before ending the New York session at USD$1428 an ounce. Oil gapped higher early but fell later as bombing slowed down. WTI Oil Closed +$1.15 at $102.20 a barrel.
