Currency Updates:
U.S. Dollar Trading (USD) was well supported by pullbacks in stocks and commodities globally due to profit taking. The FOMC minutes gave Wall St. a boost as the FED maintained its view for a full QE2 implementation even as economic data has improved somewhat. In US stocks, DJIA +20 points closing at 11691, S& P +1 points closing at 1271 and NASDAQ +38 points closing at 2691. Looking Ahead, December ADP Private Employment is forecast at 100k vs. 93k previously.
The Euro (EUR) was strong in Europe testing above 1.3400 before once again come under heavy selling pressure to fall quickly back below 1.3300. EUR/GBP was a major mover as well falling sharply as the GBP found support.   EUR/USD traded with a low of 1.3290 and a high of 1.3436 before closing at 1.3305. Looking ahead, German December PMI Services forecast at 58.3.
The Japanese Yen (JPY) was strong with USD/JPY breaking above Y82 on a combination of good US data and heavy GBP/JPY, EUR/JPY buying during the European session. Overall the USDJPY traded with a low of 81.60 and a high of 82.30 before closing the day around 82.10 in the New York session.
The Sterling (GBP) was bought aggressively across the board on talk of large sovereign buying. Also helping the pair to maintain gains was the large jump in December Manufacturing PMI to record 58.3. Overall the GBP/USD traded with a low of 1.5452 and a high of 1.5649 before closing the day at 1.5580 in the New York session. Looking ahead, December PMI Construction is forecast 50.9 vs. 51.8 previously.
The Australian Dollar (AUD) was crunched lower as Gold& rsquo s losses mounted and the Oil fell off a cliff down $3 a barrel at one stage. Support was eventually found in the lower 1.0030 region and a mild recovery ensued. Overall the AUD/USD traded with a low of 1.0126 and a high of 1.0174 before closing the US session at 1.0055.
Oil & Gold (XAU) crashed back under $1400 on heavy liquidation of 2010 long positions with the market falling over $30 an ounce. Overall trading with a low of USD$1374 and high of USD $1418 before ending the New York session at USD$1382 an ounce. Joined in the commodity liquidation falling through $91, $90 and $89 support levels. WTI Oil Closed -$2.40 at $89.30 a barrel.
