Currency Updates:
U.S. Dollar Trading (USD) the market was already in risk off mode going into the US jobs data which shocked to the downside sending the Dow jones over 200 points lower before staging a small recovery for the rest of the session. Traders are beginning to increase the chances of QE3 at the June 21 US FOMC meeting and this is providing stockmarkets and USD sellers support. May NonFarm Payrolls at 69k vs. 150k forecast. The Unemployment rate increased to 8.2% in May vs. 8.1% previously. Looking ahead, April Factory Orders forecast at 0.3% vs. -1.9% previously.
The Euro (EUR) the weakness into the US NFP saw 1.2300 tested but this level held before the weak US data and QE3 talk helped the EUR/USD bounce into the US session. More selling is likely while the EU authorities argue of the correct solution to the growing Spanish crisis and as we move towards the Greece elections in 2 weeks. EUR/GBP is one bright spot moving higher towards 0.8100 as the British Pound is crunched lower.
The Japanese Yen (JPY) the NFP miss on Friday immediately sent the major below Y78 to hit Y77.70 before rebounding on semi official intervention sending the USD/JPY briefly up to Y78.70. The lack of follow through sent the pair back to Y78.20 into the close. Crosses followed the wild ride as well down then sharply up but sellers are looking to test even lower levels on the EUR/JPY and AUD/JPY.
The Sterling (GBP) we saw severe selling on Friday after the May UK PMI dropped to 45.9 vs. 50.2 previously. The GBP/USD found support at 1.5300 and managed to recover as the USD was sold post NFP on Friday. Chances are now increasing in the UK as well they will expand their own QE. Also ahead, June Sentix Investor EU confidence forecast at -29.1 vs. -24.5 previously.
Australian Dollar (AUD) the AUD/USD reacted sharply lower to 0.9580 after the NFP before bouncing with the AUD/JPY back to 0.9700 where resistance was found to be solid. The Outlook is for more losses with the RBA rates tomorrow likely to cut and the slowdown in China and Europe adding to the downside pressure.
Oil & Gold (XAU) Gold was the biggest mover on Friday with the weak US jobs leading to QE3 talk and we saw move above $1600 to $1630 for an $80 an ounce move. OIL/USD Oil is under heavy selling pressure with the global manufacturing slowdown leading to fall from $85 to $82.
