Currency Updates:
U.S. Dollar Trading (USD) was sold against most pairs as the mood changed once again yesterday and & lsquo risk on& rsquo trading hurt demand for the safe haven Dollar. November ADP Employment improved +93k vs. 43k previously. November ISM Manufacturing remained steady at 56.6 vs. 56.9 previously. In US stocks, DJIA +249 points closing at 11255, S& P +25 points closing at 1206 and NASDAQ +51 points closing at 2549. Looking ahead, Weekly Jobless Claims are forecast at 425k vs. 407k.
The Euro (EUR) rebounded aggressively after reclaiming the 1.3000 handle in the Asian session on talk in the market that the ECB may have a new aggressive plan to deal with the Debt contagion threat. Also supporting was talk the US would support an expanded IMF/EU bailout fund for the Eurozone. EUR/USD traded with a low of 1.2970 and a high of 1.3183 before closing at 1.3140. Looking ahead, ECB Rate Announcement forecast to remain at 1.0% with President Trichet speaking afterwards.
The Japanese Yen (JPY) was the weakest currency in the market with USD/JPY remaining supported on dips and EUR/JPY leading the Yen crosses higher tracking the 2% gain in US stocks. Overall the USDJPY traded with a low of 83.36 and a high of 84.41 before closing the day around 84.15 in the New York session.
The Sterling (GBP) the market responded bullishly to a very strong UK Manufacturing PMI at 58 vs. 55.5 previously, a fresh 16 year high. November Nationwide House Prices were weak however at -0.3% vs. -0.2% forecast. Cable rallied with the market but failed to hold gains as EUR/GBP rebounded. Overall the GBP/USD traded with a low of 1.5543 and a high of 1.5651 before closing the day at 1.5610 in the New York session.
The Australian Dollar (AUD) was very volatile falling heavily after weaker than expected Q3 GDP at +0.2% vs. +0.5% before the market tracked the Euro and stocks turning positive and then gaining on the day. Risk appetite continues to be the biggest contributor to intraday Aussie movement. Overall the AUD/USD traded with a low of 0.9536 and a high of 0.9700 before closing the US session at 0.9670. Looking ahead, October Trade Balance is forecast at 2000m vs. 1760m previously. October Retail Sales forecast at 0.3% vs. 0.3%.
Oil & Gold (XAU) consolidated the move higher on Tuesday unable to break above the key $1400. Overall trading with a low of USD$1381 and high of USD $1397 before ending the New York session at USD$1388 an ounce. Oil surged with US stocks pushing an already strong market higher. WTI Oil Closed +$2.61 at $86.72 a barrel.
