Currency Updates:
U.S. Dollar Trading (USD) the market continued to be very volatile in thanksgiving affected trade on Friday with stocks falling heavily around the world on fears of Eurozone debt concerns. The market initially opened strong on Monday morning in Asia on news that a E85bn financial rescue package had been approved by EU Finance Ministers over the weekend. Focus will remain on Portugal and Spain to see if threat contagion threat remains in European trade. In US stocks, DJIA -95 points closing at 11092, S& P -8 points closing at 1189 and NASDAQ -8 points closing at 2534
The Euro (EUR) remained under pressure for most of the day as traders were happy to sell the single currency while details of the Irish bailout was worked out. Support was found at 1.3200 but the market is already focused on Portugal on denied reports that EU officials were pressuring the Portuguese government to take a bailout. EUR/USD traded with a low of 1.3199 and a high of 1.3365 before closing at 1.3236. Looking ahead, November Consumer Sentiment forecast at -10 vs. -11 previously.
The Japanese Yen (JPY) Broke above Y84 as the market uptrend continued. The price actions has been very subdued the but the direction is undeniable grinding higher over the last 2 weeks. Yen crosses are much more mixed with AUD/JPY and EUR/JPY lower on risk off trading. Overall the USDJPY traded with a low of 83.58 and a high of 84.18 before closing the day around 84.05 in the New York session. UPDATE October Retail Sales -0.2% vs. 0.8% forecast y/y.
The Sterling (GBP) struggled to bounce with EUR/GBP failing to fall and Cable tracking the EUR/USD lower. Cable slipped below 1.5600 and is looking weak with UK bank exposure to Irish debt linking the currencies fate. Overall the GBP/USD traded with a low of 1.5591 and a high of 1.5770 before closing the day at 1.5615 in the New York session. Looking ahead, October Mortgage Approvals is forecast at 47k vs. 47.5k previously.
The Australian Dollar (AUD) fell heavily after breaking support at 0.9710 and RBA Governor Stevens stated that RBA may hold for some time after raising rates aggressively during the previous year. AUD/JPY is becoming the preferred way for traders to express risk as the USD/JPY begins to rally. Overall the AUD/USD traded with a low of 0.9614 and a high of 0.9816 before closing the US session at 0.9646.
Oil & Gold (XAU) heavy selling came through due to USD strength with gold down over $20 an ounce at one point before recovering into the close. Overall trading with a low of USD$1351 and high of USD $1371 before ending the New York session at USD$1363 an ounce. Oil was under pressure due to poor investor sentiment but selling was subdued since most US traders were on holiday. WTI Oil Closed -$0.10 at $83.75 a barrel.
