Currency Updates:
U.S. Dollar Trading (USD) the bailout optimism was very short lived with markets around the world continuing to sell off on fears more Eurozone countries would pulled down from Debt contagion. Italy and Spain both had yields increase and stocks fell heavily in Europe. In US stocks, DJIA -39 points closing at 11052, S& P -1 points closing at 1187 and NASDAQ -9 points closing at 2525. Looking ahead, November Chicago PMI is forecast at 60 vs. 60.6.
The Euro (EUR) a rally in late Asia to 1.3300 was the highs of the day after which the market sold heavily on risk aversion and debt contagion risk. The lack of a resolution to the crisis if flaming the fires with fresh developments mostly negative. EUR/USD traded with a low of 1.3063 and a high of 1.3230 before closing at 1.3120. Looking ahead, November German Unemployment Change is forecast at -20k vs. -3k previously. November Inflation Flash forecast 1.9% vs. 1.9% y/y.
The Japanese Yen (JPY) continued grinding higher ignoring the rest to market to push to fresh month highs above Y84.40. Y85 is the next target as USD returns to favor and the North Korean Situation damages the Yens safe haven appeal. Overall the USDJPY traded with a low of 83.81 and a high of 84.42 before closing the day around 84.25 in the New York session. UPDATE October Industrial Preliminary at -1.8% vs. -3.3% forecast.
The Sterling (GBP) continued to be sold on rallies falling to lower 1.55 levels at the height of US stock market weakness. UK House prices fell again in November according to Hometrack down -0.8% m/m.     Overall the GBP/USD traded with a low of 1.5525 and a high of 1.5650 before closing the day at 1.56 in the New York session. Looking ahead, November Consumer Confidence at -21 vs. -19 previously.
The Australian Dollar (AUD) was volatile falling heavily in Asia before rebounding in Europe and then crashing in the US session. The market continues to be very closely linked with Equity markets and the Euro direction. Overall the AUD/USD traded with a low of 0.9565 and a high of 0.9701 before closing the US session at 0.9620. Looking ahead, October Building Permits forecast at +1.5% vs. -6.6% previously.
Oil & Gold (XAU) grinded higher supported on strong Oil prices and safe haven demand. Overall trading with a low of USD$1352 and high of USD $1370 before ending the New York session at USD$1368 an ounce. Oil surged bucking the rest of the market trend rising on Middle Eastern tensions and strong US data. WTI Oil Closed +$2.00 at $85.75 a barrel.
