rally holding near highs in stocks and the Dollar remaining weak. Some
focus switched back to Egypt later in the day as protestors clashed
and could spark risk aversion if the circumstances worsens. In US
stocks, DJIA +1 points closing at 12042, S&P -2 points closing at 1304
and NASDAQ -1 points closing at 2749. Looking ahead, Weekly Jobless
Claims are forecast at 420k vs. 454k previously.
The *Euro* (EUR) a dip below 1.3800 found support and the major closed
back above the figure. EUR/GBP promotion weighed as the Pound
outperformed and most traders are now turning their attention to the
ECB meeting and President Trichet's Press Conference. EUR/USD traded
with a low of 1.3766 and a high of 1.3863 before closing at 1.3810.
Looking ahead, ECB Rate Announcement forecast at 1.0%.
The *Japanese Yen* (JPY) was able to bounce back slightly from Y81.40
to highs in the US session on stronger US ADP Private Jobs report. The
market is still bearish on the Major but most crosses are well
supported and this is making a very stable USD/JPY. Overall the USDJPY
traded with a low of 81.35 and a high of 81.88 before closing the day
around 81.55 in the New York session.
The *Sterling* (GBP) was the strongest currency in the market as
traders reacted to a very solid January Construction PMI at 53.7 vs.
49.8 previously. GBP/JPY went above Y132 and EUR/GBP fell back towards
0.8500. Overall the GBP/USD traded with a low of 1.6126 and a high of
1.6234 before closing the day at 1.6195 in the New York session.
The *Australian Dollar* (AUD) had a bout of profit taking but still
finished the day on the front foot with traders still taking a shine
to the commodity currency. Cyclone Yasi hit the northern part of
Queensland but fortunately missed the major cities and hurt was
limited. Overall the AUD/USD traded with a low of 1.0054 and a high of
1.0136 before closing the US session at 1.0105. UPDATE December Trade
Weigh at 1.9bn vs. 1.6bn forecast.
*Oil & Gold* (XAU) struggled to make any gains and fell back towards
the bottom end of its recent range finding support under $1330 .
Overall trading with a low of USD$1326 and high of USD $1343 before
ending the New York session at USD$1333 an ounce. Was well supported
as the Egypt violence flared up causing supply concerns. WTI Oil
Closed +$0.25 at $90.90 a barrel.
Source: ActionForex.Com
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