Currency Updates:
U.S. Dollar Trading (USD) with the G20 meeting already underway into the weekend, Friday& rsquo s trading session was subdued with slight rallies in equities keeping the USD under pressure. The G20 meeting resulted in a statement supporting a commitment to & lsquo refrain from competitive devaluation of currencies& rsquo . The comments should support the market on Monday with the threat of currency wars receding. In US stocks, DJIA -14 points closing at 11132, S& P +2 points closing at 1183 and NASDAQ +19 points closing at 2479. Looking ahead, September National Activity Index previously at -0.53%.
The Euro (EUR) the market remains supported on dips in striking distance of the key 1.4000 level. Traders are cautious towards the big figure though as recent attempts higher have been sold back. EUR/GBP is threatening 0.8900 as the broad Pound underperformance continues. EUR/USD traded with a low of 1.3858 and a high of 1.3973 before closing at 1.3934. Looking ahead, September Industrial Orders are forecast at +2.1% vs. -2.4% previously.
The Japanese Yen (JPY) managed a small rally on Friday but is struggling to get distance from Y81 as sellers remain on rallies. Expectations that Y80 will be tested and the USD weakness apparent at the moment is keeping buyers on the sidelines. The ability of the BOJ to intervene is also in question given the G20 commitments. Overall the USDJPY traded with a low of 81.00 and a high of 81.50 before closing the day around 81.35 in the New York session.
The Sterling (GBP) mild selling pressure pushed Cable back to 1.5650 as traders pick higher yielding pairs such as the Aussie and Euro to express USD weakness. GBP/JPY is struggling to find support under Y130 and is technically weak. Clarification on the UK QE situation will be needed to allow the GBP to regain some strength. Overall the GBP/USD traded with a low of 1.5657 and a high of 1.5750 before closing the day at 1.5678 in the New York session.
The Australian Dollar (AUD) pivoted the 0.9800 level as higher commodities supported whilst profit takers capped. AUD/JPY is close to the key Y80 level and will be looking to stock markets this week to direct the next movement. Overall the AUD/USD traded with a low of 0.9760 and a high of 0.9855 before closing the US session at 0.9811. Looking ahead, RBA Governor Stevens Speaks.
Oil & Gold (XAU) fell to multi-week lows ahead on the G20 meeting with traders continuing to lock in profit from the recent rally. Overall trading with a low of USD$1315 and high of USD $1329 before ending the New York session at USD$1325 an ounce. Oil moved higher off the bottom of its recent $80-83 range. WTI Oil Closed +$1.13 at $81.69 a barrel.
