CURRENCY TRADING SUMMARY
U.S. Dollar Trading (USD) the market took the cue of global Finance ministers who talked up the dollar on Friday and prompted profit taking form Oil to Gold. Crude Oil closed down $0.64 to finish the day at $72.04. US Consumer Confidence continues to edge higher up to 69 in June vs. 68.7 previously. In US share markets, the Nasdaq was down 4 points or -0.19% and the Dow Jones was up 28 points or 0.32%. Looking ahead, April Capital Net flows previously at 55.8bn.
The Euro (EUR) was very soft against the USD as the market hammered the Euro on the subject of reserve status. As the second biggest currency any talk of moves away from the Dollar standard will help the single currency advance. Russia and Japan both talked up the USD on Friday. Overall the EUR/USD traded with a low of 1.3936 and a high of 1.4128 before closing at 1.4010. Looking ahead, Q1 Employment change Q/Q previously at -0.3%.
The Japanese Yen (JPY) broke back above 98 Yen going into Europe as the USD began to strengthen for pretty much the whole day. Further gains were limited by sluggish stocks and crosses. Overall the USDJPY traded with a low of 97.50 and a high of 98.42 before closing the day around 98.22 in the New York session. Looking ahead, BOJ minutes released Tuesday.
The Sterling (GBP) weakened from the 1.6500 level as GBP/JPY ran out of steam. The Blackrock $6bn purchase of Barclay’s global investment unit has been supporting the pound in recent trading sessions. EUR/GBP tested 0.8500 but couldn’t press further. Overall the GBP/USD traded with a low of 1.6379 and a high of 1.6598 before closing the day at 1.6452 in the New York session.
The Australian Dollar (AUD) fell back from above 0.8200 for most of the day with rallies finding more profit taking into the weeks end. A pull back in Oil and Gold helped the AUD to ease. AUD/JPY traded above 80 Yen quite comfortably as USD/JPY rallied. Overall the AUD/USD traded with a low of 0.8060 and a high of 0.8209 before closing the US session at 0.8130.
Gold (XAU) looked comfortable within the current range as the market awaits the next catalyst. Overall trading with a low of USD$936 and high of USD$959 before ending the New York session at USD$940 an ounce.