Currency Updates:
U.S. Dollar Trading (US) stocks fell back in the US session after Bernanke failed to outline any specific plans for further easing. Obama spoke outlining a new jobs package but this also failed to inspire risk taking. Weekly Jobless Claims crept higher to 414k vs. 412k previously. In US stocks, DJIA -119 points closing at 11295, S& P -12 points closing at 1185 and NASDAQ -19 points closing at 2529. Looking ahead, July Wholesale Inventories forecast at 0.8% vs. 0.6% previously.
The Euro (EUR) the Euro fell heavily after the ECB meeting which held at 1.5%. President Trichet downgraded the inflation and growth outlooks in the post meeting press conference and this saw the EUR/USD fall below 1.4000 in heavy selling. Looking ahead, August German CPI forecast at -0.1% vs. -0.1% previously.
The Japanese Yen (JPY) the USD/JPY was quiet but held above Y77 and gravitated to the key Y77.50 level now. EUR/JPY fell with the Euro news and AUD/JPY underperformed with weak local data and stock markets. The G7 could be very important if some coordinated action comes out or Japan receives permission to intervene in the currency market.
The Sterling (GBP) performed well in the risk off environment breaking above 1.6000 but failed to close above the key level falling back to 1.5950 support. EUR/GBP was the sharpest mover down under 0.8700. The BOE held at 0.5% and the Asset Purchase program at 200bn previously. Looking ahead, August PPI Input -1.5% vs. 0.6% m/m.
The Australian Dollar (AUD) the AUD/USD slumped below 1.0600 after weak August Jobs data. Employment fell -9.7k vs. 11k forecast and the unemployment rate jumped to 5.3% vs. 5.1% previously. The weak data could prompt the RBA to hold interest rates.
Oil & Gold (XAU) Gold surged back to life above $1850 and tested $1870. Crude Oil consolidated near the $90 level well support on dips through the day.
