Currency Trading Summary - 3rd August

 @ibtimes on August 03 2009 10:55 AM

U.S. Dollar Trading (USD) better than expected Q2 GDP helped buoy Oil and Global Equity markets to finish the week strong at the expense of the USD. Q2 GDP at -1.0% vs. -1.5%. US July Chicago PMI jumped to 43.4 vs. 39.9 previously. GDP numbers showed the US economy is stabilizing. Crude Oil ended up $2.51 to close at $69.45. In US share markets, S&P ended +1 points (0.07%) at 987, NASDAQ ended -5.8 points (0.84%) at 1978 and DOW JONES ended +17 points (0.2%) at 9171. Looking ahead, July ISM Manufacturing is forecast at 56.5 vs. 44.8 previously.

The Euro (EUR) broke above 1.4100 in Asia and consolidated above this level before reacting to risk appetite on strong US data and surging Oil. 1.4300 was tested twice last week and will provide significant resistance on route to 1.4338 year highs. O verall the EUR/USD traded with a low of 1.4065 and a high of 1.4280 before closing at 1.4253. Looking ahead, German Retail Sales forecast at 0.3% in June vs. -1.3% previously. July PMI Manufacturing(Final) forecast to remain at 45.2.

The Japanese Yen (JPY) was weaker after US data induced Yen selling especially against risk currencies of AUD and GBP. USD/JPY actually slipped lower as USD came under broad selling pressure. June Unemployment jumped to 5.4% vs. 5.2% previously. O verall the USDJPY traded with a low of 94.51 and a high of 95.84 before closing the day around 94.80 in the New York session.

The Sterling (GBP) broke out of the recent range to the upside breaking resistance at 1.6550-1.6600 to trade to just under Year highs at above 1.6700. The GBP is receiving a lot of support form improved risk sentiment and strong oil as well as crosses such as GBP/JPY and EUR/GBP. O verall the GBP/USD traded with a low of 1.6468 and a high of 1.6732 before closing the day at 1.6698 in the New York session. Looking ahead, UK PMI forecast in July at 47.7 vs. 47 previously.

The Australian Dollar (AUD) broke to fresh year highs as the majors moved and commodities surged on broad USD weakness. AUD/JPY expressed improved risk sentiment trading up to just under the key 80 Yen level. Gold rallied over $20 an ounce. O verall the AUD/USD traded with a low of 0.8239 and a high of 0.8348 before closing the US session at 0.8363. Looking ahead, June Retail Sales forecast at 0.5% vs. 1.0%.

Gold (XAU) broke as USD slid and Oil broke higher. Overall trading with a low of USD$932 and high of USD$957 before ending the New York session at USD$954 an ounce.

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