Currency Trading Summary

U.S. Dollar Trading (USD) was very strong for most of the day as stocks around the world suffered from heavy profit taking and concerns of new bubbles in assets. Weekly Jobless claims were at forecasts of 505k whilst the November Philly Fed was stronger at 16 vs. 11.5 previously. In US Stocks, DJIA -93 points closing at 10332, S&P -15 points closing at 1094 and NASDAQ -36 points closing at 2156.

The Euro (EUR) was very heavy as USD strength and EUR/JPY selling that continued for much of the day. A slight reprieve at the end of the US session allowed the pair to reclaim the 1.4900 level. A much touted 1.48-1.51 DNT option is though to expire today which could allow for a break of the recent range next week. Overall the EUR/USD traded with a low of 1.4842 and a high of 1.4958 before closing at 1.4900. Looking ahead, October German PPI is forecast at 0.1% vs. -0.5% previously.

The Japanese Yen (JPY) was the strongest currency yesterday on risk aversion demand. Liquidation of AUD/JPY and GBP/JPY guided the USD/JPY below 89 Yen. Stock markets and US bond yields are the main factors affecting the Yen at the moment. Overall the USDJPY traded with a low of 88.63 and a high of 89.46 before closing the day around 88.95 in the New York session. Looking ahead, BOJ meeting today.

The Sterling (GBP) was under pressure on most pairs as the risk sensitive currency struggled in a souring global market. Oil was under pressure and continued bad press about UK banks weighed on the Pound. October Retail Sales were at 0.4% vs. 0.5% forecast. Overall the GBP/USD traded with a low of 1.6604 and a high of 1.6744 before closing the day at 1.6640 in the New York session.

The Australian Dollar (AUD) slumped for the second day as traders booked profit from the recent rally and commodities apart were very weak. AUD/JPY selling and a mixed technical outlook are beginning to weigh although should sentiment improve the Aussie is prone to bounce first. Overall the AUD/USD traded with a low of 0.9130 and a high of 0.9285 before closing the US session at 0.9180.

Oil & Gold (XAU) held up well as safe haven flows offset gains in the USD. Overall trading with a low of USD$1130 and high of USD$1146 before ending the New York session at USD$1141 an ounce. Weakened as investor sentiment turned 'risk off'. Crude Oil was down -$2.12 ending the New York session at $77.46.