Currency Updates:
U.S. Dollar Trading (USD) when the US session opened a sharp sell off was seen in equities which sent the Dollar higher against risk assets on safe haven demands. The middle east turmoil threatens to derail the recent 3 month rally seen in global markets especially if uprisings spread to Iran or Saudi Arabia. In US stocks, DJIA -178 points closing at 12212, S& P -27 points closing at 1315 and NASDAQ -77 points closing at 2756. Looking ahead, January Existing Home Sales forecast at 5.24mln vs. 5.28mn previously.
The Euro (EUR) fell sharply in Asia on the general risk aversion and Euro Debt concerns but recovered sharply in in the European session on more comments from ECB officials regarding interest rate hikes to counter inflation. Overall the EUR/USD traded with a low of 1.3523 and a high of 1.3715 before closing the day around 1.3675 in the New York session. Looking ahead, December Industrial Orders -0.8% vs. 2.1%.
The Japanese Yen (JPY) had a volatile trading day with risk aversion sending the Yen higher across the board. The USD/JPY was able to spike higher in Asia to Y83.40 after Moody&rsquo s put Japan on negative watch.   Overall the USD/JPY traded with a low of 82.99 and a high of 83.55 before closing the day around 83.15 in the New York session. Update January Trade Balance at -471bn vs. 60bn forecast.
The Sterling (GBP) was under heavy selling pressure against all the majors with risk turned off. Cable moved back to 1.6100 and EUR/GBP moved back towards 0.8500. GBP/JPY was also under pressure as the recent rally reversed. Overall the GBP/USD traded with a low of 1.6099 and a high of 1.6231 before closing the day at 1.6130 in the New York session.
The Australian Dollar (AUD) broke through parity as the market sold the risk currency heavily across the board. Adding to the selling pressure was news of a major Earth Quake in the New Zealand which hurt the NZD and overflowed into the Aussie as well. Overall the AUD/USD traded with a low of 0.9965 and a high of 1.0087 before closing the day at 0.9990 in the New York session.
Oil & Gold (XAU) profit taking kept the precious metal close to $1400. Overall trading with a low of USD$1392 and high of USD $1411 before ending the New York session at USD$1398 an ounce. Oil ended lower but was extremely volatile. WTI Oil Closed -$2.10 at $95.50 a barrel.
