Currency Updates:
U.S. Dollar Trading (USD) risk appetite remained strong as stock markets pushed fresh highs but the USD was able to maintain strength as selling in Asia was bought back hard in the European session. Helping the Dollar rally was the sharp drop in Oil on stabilizing middle east concerns. In US stocks, DJIA +69 points closing at 12161, S& P +8 points closing at 1319 and NASDAQ +14 points closing at 2783. Looking ahead, FOMC Member Fisher Speaks.
The Euro (EUR) rallied to 1.3600 in Asia on strong Japanese stocks and EUR/JPY buying but was sold aggressively in Europe on weak economic data. German December Factory Orders dropped -3.4%. EUR/USD traded with a low of 1.3507 and a high of 1.3628 before closing at 1.3580. Looking ahead, December Industrial Output forecast at 0.3% vs. -0.7%.
The Japanese Yen (JPY) remained in a 20 pip range consolidating the move higher on Friday. Crosses where more volatile with EUR/JPY tracking the major. Most of Asia is away for new year celebrations but should return tomorrow to create fresh volatility as they play catch up. Overall the USDJPY traded with a low of 82.14 and a high of 82.49 before closing the day around 82.30 in the New York session.
The Sterling (GBP) traded inside Friday&rsquo s range as the market waited for fresh direction. GBP/JPY remains a source of support as does EUR/GBP which slipped below 0.8400. Overall the GBP/USD traded with a low of 1.6087 and a high of 1.6188 before closing the day at 1.6130 in the New York session.
The Australian Dollar (AUD) found resistance at 1.0160 on multiple occasions but with stock markets stronger the Aussie remained well supported. December Retail Sales came out at 0.2% vs. 0.4% previously. Overall the AUD/USD traded with a low of 1.0102 and a high of 1.0163 before closing the US session at 1.0135. UPDATE January Business Confidence at +4 vs. -3 previously.
Oil & Gold (XAU) stayed within a tight range grinding higher back above $1350. Overall trading with a low of USD$1344 and high of USD $1353 before ending the New York session at USD$1352 an ounce. Was sold sharply on easing Egyptian concerns and a buildup of inventories. WTI Oil Closed -$1.70 at $87.30 a barrel.
