Currency Updates:
U.S. Dollar Trading (USD) the USD was strong against all major except the other safe haven Yen with stock markets crashing on Friday and then again on Monday morning Asia. The main concern on Friday was weaker than expected NonFarm Payrolls from the US in April at +115k vs. 173k forecast. Looking ahead, March Consumer Credit forecast at 9.5bn vs. 8.73bn previously.
The Euro (EUR) the EUR/USD was under pressure Asia breaking below 1.3000 and then falling to 1.2960 as French and Greece elections over the weekend created fresh risks to the Eurozone. The new French President has stated he wants to focus on growth and not austerity going forward. The Greece elections resulted in anti EU politicians gaining favor with their platform of anti-bailout and austerity measures.
The Japanese Yen (JPY) the USD/JPY slipped below Y80 on Friday night with the weak US data and the cross selling accelerated on Monday with the EUR/JPY now down near Y104 and the GBP/JPY near Y128.50. The USD/JPY will be closely watched with the BOJ/MOF likely to comment on the Yen strength in the coming sessions and maybe even stabilize the market if falls become too one sided.
The Sterling (GBP) the GBP/USD was not immune to the EUR/USD selling but was supported as the EUR/GBP slumped. The EUR/GBP is below 0.8100 and is going towards 0.8100. Looking ahead, March German Industrials Orders forecast at 0.5% vs. 0.3% previously.
Australian Dollar (AUD) the AUD/USD broke the two month range to the downside on Friday breaking below 1.0200 and is targeting party at 1.0000 in coming sessions. Most are looking to sell on rallies with stocks and the EUR/USD also under pressure and the RBA likely to continue cutting rates in coming meetings. UPDATE April Retail Sales +0.9 vs. 0.3% previously.
Oil & Gold (XAU) XAU/USD is being kept contained as the EUR/USD led Dollar strength pulls the precious down while the sovereign risk from the change in European government is supporting. OIL/USD Crashed on Friday and continued on Monday breaking below $100 a barrel and slumping as low at $96.
