Currency Updates:
U.S. Dollar Trading (USD) market volatility returned overnight with the negative reaction to the Greek referendum vote continued and manufacturing PMI& rsquo s around the world sending warning signs about the global recovery. October US ISM fell to 50.8 vs. 51.6 previously. In US stocks, DJIA -297 points closing at 11658, S& P -35 points closing at 1218 and NASDAQ -77 points closing at 2606. Looking ahead, FOMC FED Rate Forecast at unchanged at 0.25%. The FOMC Press conference could move markets with QE3 a   possibility.
The Euro (EUR) the Greece PM surprise decision to take the EU bailout to a referendum is creating uncertainty in the market with the EUR/USD and Euro stocks sold off heavily on the news. The referendum would probably take place in January and the markets would be uncertain until then. The Greek PM himself is up for a confidence vote and this could lead to fresh elections he fails.
The Japanese Yen (JPY) settled down after intervention on Monday with the heavy selling on crosses hurting the USD/JPY upside. The market is spooked easily and USD/JPY jumped Y79 briefly on intervention rumors during Asia before paring back to Y78. EUR/JPY dropped below Y107 but found support under the figure.
The Sterling (GBP) risk aversion mounted and the GBP/USD crashed below 1.6000 unable to react to better than expected Q3 GDP at 0.5% Q/Q. The October Manufacturing plummeted to 47.4 through and this led to heavy selling on cable back to 1.5900. Looking ahead, October Construction PMI forecast to remain at 50.1.
The Australian Dollar (AUD) the Aussie lost ground across the board yesterday as the RBA cut rates to 4.5% as forecast to help the economy respond to slowing global growth and falling inflation. The AUD/USD fell from 1.0550 to test 1.0300 in the US session and is a major reversal of fortune for the commodity currency.
Oil & Gold (XAU) Gold dipped below $1700 on USD demand going into the US session but this was reversed sharply as safe haven demand for the precious metal jumped on debt concerns out of Europe. Oil dipped below $90 a barrel before recovering and closing above $91 holding up well in risk off trade.
