U.S. Dollar Trading (USD) came under pressure across the board as a jump in shares helped increase risk appetite. May Retail Sales rose 0.5% vs. 0.6% forecast. Commodities also rallied with Oil jumping to $73 a barrel after the IEA raised its world Oil demand forecast. Weekly jobless claims fell 24k to 601k this week. Crude Oil closed up $11.35 to finish the day at $72.68. In US share markets, the Nasdaq was up 9 points or 0.50% and the Dow Jones was up 31 points or 0.37%. Looking ahead, G8 Finance minister meet over the weekend.
The Euro (EUR) broke above 1.4200 during the US session after bouts of USD strength earlier in the day. Heavy EUR/JPY buying helped to support the major higher. EUR/GBP continues to trade near the key 0.8500 level. Overall the EUR/USD traded with a low of 1.3940 and a high of 1.4180 before closing at 1.4120. Looking ahead, April Industrial Production is forecast at -0.4% vs. -2% previously.
The Japanese Yen (JPY) spent the day in the recent range with dip below 98 being bought up from pressure on the crosses. Q1 GDP was revised higher to -3.8% vs. -4.0% previously. AUD/JPY broke above the key 80 yen level. Overall the USDJPY traded with a low of 97.24 and a high of 98.57 before closing the day around 97.40 in the New York session. Looking ahead, April Industrial Output previously at 5.2%. Also released, May Consumer Confidence previously at 32.4.
The Sterling (GBP) rallied with the higher stocks/Oil theme. The pair managed to break above 1.6600 before consolidating for the rest of the day. EUR/GBP selling supported the move higher as did the GBP/JPY which made further inroads into the 160’s. Overall the GBP/USD traded with a low of 1.6238 and a high of 1.6475 before closing the day at 1.6350 in the New York session.
The Australian Dollar (AUD) pushed back to 0.8200 after Unemployment data showed the Australian economy was surviving the global economic turndown with increasing comfort. May Unemployment change was -1.7k vs. -30k forecast and the Unemployment rate jumped to 5.7% as expected. Overall the AUD/USD traded with a low of 0.8027 and a high of 0.8241 before closing the US session at 0.8175.
Gold (XAU) looked comfortable within the current range as the market awaits the next catalyst. Overall trading with a low of USD$942 and high of USD$963 before ending the New York session at USD$955 an ounce.