Currency Updates:
U.S. Dollar Trading (US) the USD finished the month and the quarter on a strong footing with safe haven demand on fresh risk aversion. Stocks fell heavily in the US session with fears that the debt crisis in Europe is going to drag the US and Global economy into recession. Chicago PMI forecast at 60.4 vs. 56.5 previously. In US stocks, DJIA -240 points closing at 10913, S& P -28 points closing at 1131 and NASDAQ -65 points closing at 2415. Looking ahead, September ISM Manufacturing forecast at 50.3 vs. 50.6 previously.
The Euro (EUR) continued to slide with talk Greece will not meet deficit targets putting more pressure on the German and French politicians to support the troubled country. Concerns are also evident in the banking sector with more European banks having to tap Dollar funding from the ECB. Looking ahead, German Bank Holiday. September PMI Manufacturing forecast at 48.4 vs. 48.4 previously.
The Japanese Yen (JPY) The USD/JPY moved higher on USD strength breaking above Y77 and closing above the figure for small losses against the other safe haven in the market. Risk currencies slumped though with EUR/JPY falling back to Y103 and target Y100 as the downtrend continues. UPDATE Q3 Tankan Manufacturing Index at 2 vs. -9 previously.
The Sterling (GBP) fell back below 1.5600 as the selling in stocks put downward pressure on the GBP but the EUR/GBP selling helped keep GBP/USD limited. Support at 1.5550 has held so far but further negative news could cause a break and test of 1.5500 today in the UK session.
The Australian Dollar (AUD) selling came back in force breaking to 0.9650 in the US session with the uncertainty and lack of progress on Greece creating a toxic environment for the Aussie. Commodities are also under heavy selling pressure and Chinese concerns are adding to the downside risks. Support is seen at year lows 0.9620 and the key 0.9500.
Oil & Gold (XAU) Gold traded in a range above $1600 with the USD strength countered by renewed buying interest in the precious metal. Crude Oil slumped under $80 a barrel to hit support at $78 before stabilizing.  
