U.S. Dollar Trading (USD) as fears about Greece eased on perceived efforts to speed up aid delivery the market focused on Q1 earnings and continued pushing higher. Weekly Jobless Claims came in at 448k vs. 465k previously. In US stocks, DJIA +122 points closing at 11167, S&P +15 points closing at 1191 and NASDAQ +40 points closing at 2511. Looking ahead, Q1 GDP forecast at 3.4% vs. 5.6% previously. Also Released, April Michigan Final 71 vs. 73.6.
The Euro (EUR) with yields coming down on Greece and Portugal bonds the Euro was able to stage a decent relief rally. Traders are speculating an improved bailout package will be announced over the weekend and are hesitant to aggressively short the market before then. Also helping Eurozone sentiment was the large drop in German Unemployment -68k in April. EUR/USD traded with a low of 1.3183 and a high of 1.3280 before closing at 1.3260. Looking ahead, April Inflation is forecast at 1.5% vs. 1.4% previously.
The Japanese Yen (JPY) was under pressure as stock markets rallied and Yen crosses lifted higher led by GBP/JPY which enjoyed a solid bounce. USD/JPY bulls are still targeting Y95 and US GDP tonight or next weeks NFP could be the catalyst. Overall the USDJPY traded with a low of 93.84 and a high of 94.28 before closing the day around 94.10 in the New York session. Looking ahead, BOJ Rate announcement forecast to remain at 0.1%.
The Sterling (GBP) rallied well on the back of improving risk appetite and a good performance from Tory Leader Cameron in the final debate. April Nationwide HPI at 1.0% vs. 0.4% forecast. EUR/GBP was briefly above 0.8700 but the market used the rally to aggressively sell the cross back to the lower 0.8600 region. Overall the GBP/USD traded with a low of 1.5140 and a high of 1.5367 before closing the day at 1.5340 in the New York session.
The Australian Dollar (AUD) continued to be well supported in the 'Risk on' enviroment sitting under 0.9300 for most of the day. Major Resistance is close and a break above 0.9400 would allow talk of parity to quickly come back into the frame. Fluctuating expectations of next week's RBA rate decision is providing some volatility. Overall the AUD/USD traded with a low of 0.9221 and a high of 0.9316 before closing the US session at 0.9300.
Oil & Gold (XAU) traded in a tight range but finished near resistance at $1170. Overall trading with a low of USD$1161 and high of USD$1171 before ending the New York session at USD$1169 an ounce. Rallied back above the key $85 level. WTI Oil Closed +$1.95 at $85.17 a barrel.
Euro - 1.3245
Initial support at 1.3115 (Apr 28 low) followed by 1.2965 (Apr 29 2009 low). Initial resistance is now located at 1.3416 (Apr 27 high) followed by 1.3523 (Apr 20 high)
Yen - 94.05
Initial support is located at 92.74 (Apr 22 low) followed by 92.25 (38.2% retracement of 88.13 - 94.77). Initial resistance is now at 94.79 (Aug 5 high) followed by 95.29 (Aug 18 High).
Pound - 1.5335
Initial support at 1.5126 (Apr 28 low) followed by 1.4805 (Mar 26 low). Initial resistance is now at 1.5524 (Apr 15 low) followed by 1.5688 (Feb 18 low).
Australian Dollar - 0.9305
Initial support at 0.9035 (Mar 29 low) followed by the 0.9003 (Mar 26 low). Initial resistance is now at 0.9312 (Apr 16 high) followed by 0.9364 (Apr 15 high).
Gold - 1171
Initial support at 1135 (Apr 23 low) followed by 1122 (Apr 7 low). Initial resistance is now at 1173 (April 27 high) followed by 1183 (0.764 of 1126.56-1044.85).
Oil - 85.5
Initial support at 85.00 (Intraday Support) followed by 82.50 (Intraday Support). Initial resistance is now at 86.00 (March high) followed by 88.00 (Intraday Resistance).