U.S. Dollar Trading (USD) was very strong by default as the Euro's slide continued. Weekly Jobless Claims increased to 409k vs. 391k previously and stock markets eased. In US stocks, DJIA -25 points closing at 11697, S&P -2 points closing at 1273 and NASDAQ +7 points closing at 2709. Looking Ahead, December Non Farm Payrolls forecast at 175k vs. 39k previously and the Unemployment Rate forecast at 9.7% vs. 9.8% previously. Also ahead, Fed Chief Bernanke Speaks.
The Euro (EUR) talk that Senior EU Bank Debt Holders would face losses under new laws to limit government losses sent the Euro down to 1.3000 where the market found solid support. EUR/USD traded with a low of 1.2967 and a high of 1.3172 before closing at 1.3010. Looking ahead, November Industrial Production forecast at -0.2% vs. 2.9% previously.
The Japanese Yen (JPY) was extremely contained holding above Y83 but not pushing higher as the market waits for tonight's critical NFP data. Continued USD strength and improving data could prompt a trend change with many players short for the previous year. Overall the USDJPY traded with a low of 82.86 and a high of 83.41 before closing the day around 83.10 in the New York session.
The Sterling (GBP) another set of weak data overnight did not help the Pound with December Services PMI dipping to 49.7 from 53.0 previously. Support was seen form heavy EUR/GBP selling however down to 0.8400 as the Euro fell out of favor. Overall the GBP/USD traded with a low of 1.5444 and a high of 1.5567 before closing the day at 1.5460 in the New York session.
The Australian Dollar (AUD) kept falling as commodities crashed due to speculation the CFTC would place limits on speculation. Support was found at 0.9930 but the mood and direction has changed sharply in the last 3 days. Overall the AUD/USD traded with a low of 0.9918 and a high of 1.0018 before closing the US session at 0.9940.
Oil & Gold (XAU) support was found at $1364 again but the market was stable compared to many other commodities. Overall trading with a low of USD$1363 and high of USD $1385 before ending the New York session at USD$1378 an ounce. Oil fell over $2 on talk that speculation in commodity markets could be limited by the CFTC in the future. WTI Oil Closed -$2.30 at $88.20 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3000
Initial support at 1.2969 (Nov 29 low) followed by 1.2900 (Big Figure). Initial resistance is now located at 1.3325 (Jan 5 high) followed by 1.3433 (Jan 4 high)
Yen - 83.30
Initial support is located at 81.93 (Jan 5 low) followed by 81.61 (Jan 4 low). Initial resistance is now at 83.65 (76.4% retrace of 84..49-80.94) followed by 84.11 (Dec 20 high).
Pound - 1.5455
Initial support at 1.5425 (Dec 25 Low) followed by 1.5367 (Dec 30 low). Initial resistance is now at 1.5665 (Dec 31 high) followed by 1.5775 (Dec 15 high).
Australian Dollar - 0.9930
Initial support at 0.9918 (Dec 21 low) followed by the 0.9830 (Dec 16 low). Initial resistance is now at 1.0076 (Jan 5 high) followed by 1.0171 (Jan 4 high).
Gold - 1370
Initial support at 1364 (Jan 5 low) followed by 1361 (Dec 16 low). Initial resistance is now at 1417 (Jan 4 high) followed by 1431 (Dec 7 High).
Oil - 88.30
Initial support at 88.00 (Intraday Support) followed by 86.00 (Intraday Support). Initial resistance is now at 89.00 (Intraday Resistance) followed by 90.00 (Intraday Resistance).
Written by Anthony Darvall