Currency Updates:
U.S. Dollar Trading (USD) continued weakness in the European session was reversed as the stock market rally stalled and focus on Portugal took some of the steam out of the EUR/USD rally. Oil Continued to press higher on Concerns the Libyan crisis may extend for a long time and this is also dampening sentiment. In US stocks, DJIA -17 points closing at 12018, S& P -4 points closing at 1293 and NASDAQ -8 points closing at 2683. Looking ahead, February New Home Sales forecast at 0.29mln vs. 0.28mln previously.
The Euro (EUR) fresh highs in Europe reversed on concerns that the Portugal Politics will get in the way of austerity measures required for the small EU country to avoid a bailout. Debt costs increasing may reignite the Debt Crisis with Germany a focal critic and close to elections. The ECB moving to raise rates is supporting the EUR/USD although if the Debt crisis reignites they may have to delay action. Overall the EUR/USD traded with a low of 1.4161 and a high of 1.4250 before closing the day around 1.4180 in the New York session. Looking ahead, January Industrial Orders forecast at 1.5% vs. 2.1% previously.
The Japanese Yen (JPY) kept to a 40 pip range around Y81 as the market waited for more BOJ intervention and information from the Nuclear plant crisis. AUD/JPY and GBP/JPY continued to track higher and are well supported at highs. Overall the USD/JPY traded with a low of 80.83 and a high of 81.26 before closing the day around 81.00 in the New York session. Looking ahead, February Trade Balance forecast 894bn vs. -471bn previously.
The Sterling (GBP) had a good day across the board as economic data supported. February CPI gained 0.7% m/m to bring the y/y to 4.4% which is well above the target rate. March CBI Industrial Orders were strong at +5 in March. Overall the GBP/USD traded with a low of 1.6290 and a high of 1.6404 before closing the day at 1.6355 in the New York session. Looking ahead, MPC Minutes forecast at to remain at 3 raise &ndash 6 hold &ndash 0 cut.
The Australian Dollar (AUD) the Aussie moved above 1.0100 as AUD/JPY buying and positive momentum continued to push the commodity currency higher. Further gains back to all time highs above 1.0250 will require the stock markets to resume their 6 month uptrend and print fresh highs. Overall the AUD/USD traded with a low of 1.0036 and a high of 1.0130 before closing the day at 1.0090 in the New York session.
Oil & Gold (XAU) remained strong in the same range as the market waited for the next catalyst. Overall trading with a low of USD$1419 and high of USD $1432 before ending the New York session at USD$1427 an ounce. Oil continued to move higher on Geopolitical concerns. WTI Oil Closed +$1.67 at $104.00 a barrel.
