â€¢ U.S. Dollar Trading (USD) eased capping its two previous session of rallies against a basket of majors. Reports circulated that the U.A.E may look to offload the Dirhamâ€™s peg with the dollar according to one of the central bank officials. The U.S. dollar suffered as rebounding stock prices placed high yielderâ€™s back in favor. In U.S. share markets the NASDAQ was up +89.52 (+3.46) whilst the Dow Jones also gained by +319.54 (2.46%). Crude oil fell by US$3.35 a barrel to US$91.30. Looking ahead, Retail Sales, and PPI appear to be key data releases today. Whilst Ben Bernanke is scheduled to speak today.
â€¢ The Euro (EUR) was able to gain 0.5% throughout the day following views that the UAE would cease its ties with the USD and was further buoyed by rebounding stock prices. Overall the EURUSD traded with a low of 1.4522 and a high of 1.4633 before closing the day at 1.4607 in the New York session. GDP data out of the EZ will accompany talks scheduled by ECB president Trichet.
â€¢ The Japanese Yen (JPY) fell across the board as rebounding stock prices re-instated traders appetite for risk. Further more the BoJ kept rates unchanged with an 8 to 1 vote, with Mizuno the dissenter once again voting for a rate hike. In Accompanying statements Governor Toshihiko Fukui gave no indication of when the central bank would increase interest rates following Tuesdayâ€™s policy meeting. The decline was compounded following Prime Minister Yasuo Fukuda warnings about the pace of the Yen's advance. Overall the USDJPY traded with a low of 109.23 and a high of 110.52 before closing the day at 110.17 in the New York session.
â€¢ The Sterling (GBP) was buoyed by strong CPI readings coming in well above expectations at 2.1% figure for the year, above the BoE target of 2%. The GBP was also buoyed by a return to carry trades favoring its role as a high yielding currency. Overall the GBPUSD traded with a low of 109.23 and a high of 110.52 before closing the day at 110.70 in the New York session.
â€¢ The Australian Dollar (AUD) paired its previous session losses to trade higher as speculators returned to risky carry trades. Overall the AUDUSD traded with a low of 0.8754 and a high of 0.8949 before closing near day highs of 0.8964 in the New York session.
â€¢ Gold (XAU) fell for a third straight session after a drop in energy costs reduced the appeal of the precious metal as a hedge against inflation. XAU traded with a low of 791.60 and a high of 808.70.
â€¢ Euro 1.4620
Initial support at 1.4467 (Nov 6 low) followed by 1.4419 (Nov 2 low). Initial resistance is now located at 1.4731 (Nov 7 high) followed by 1.4782 (Nov open + (Oct range * 0.618)
â€¢ Yen 111.20
Initial support is located at 109.13 (Nov 12 low) followed by 108.99 (May 17, 2006 reaction low). Initial resistance is now at 112.88 (Nov 9 high) followed by 113.38 (Nov 1 high).
â€¢ Pound â€“ 2.0750
Initial support at 2.0427 (Oct 24 low) followed by 2.0304 (Oct 23 low). Initial resistance is now at 2.0922 (Nov 12 high) followed by 2.1161 (Nov trend line)
â€¢ Australian Dollar â€“ 0.9005
Initial support a 0.8749 (Oct 22 low) followed by 0.8714 (Nov 1 reaction low). Initial resistance is now at 0.9331 (Nov 8 high) followed by 0.9400 (Nov 7 trend high).
â€¢ Gold â€“ 803.20
Initial support at 788.40 (Nov 2 low) followed by 784.40 (Nov 1 low). Initial resistance is now at 845.80 (Nov 7 trend high) followed by 846.15 (November open + (October range * 0.618)