FOREX TRADING

U.S. Dollar Trading (USD) very strong US data sent stock markets higher and helped the USD/JPY regain the Y94 level. Risk currencies though did well as the Euro led the rest of the market higher against the safe haven Dollar. March New Home Sales jumped over 20% to 411k vs. 330k forecast. March ex-Trans Durable Goods surged 2.8% vs. 0.7% expected. In US stocks, DJIA +69 points closing at 11204, S&P +8 points closing at 1217 and NASDAQ +11 points closing at 2530.

The Euro (EUR) was well supported when Greece Activated its Aid package in Early Europe although initial gains were limited and the market waited for supportive comments from France and Germany before pushing higher into the US close. April IFO was very strong at 101.6 vs. 98.8 expected. Overall the EUR/USD traded with a low of 1.3202 and a high of 1.3400 before closing at 1.3370. Looking ahead, ECB President Trichet Speaks.

The Japanese Yen (JPY) was the weakest currency across the board as the Greece aid activation saw risk appetite surge and stock markets traded at fresh year highs in the US. USD/JPY was very strong on the better than expected US data and EUR/JPY squeezed higher on short covering. Overall the USDJPY traded with a low of 93.32 and a high of 94.32 before closing the day around 94.06 in the New York session.

The Sterling (GBP) was under pressure because of solid EUR/GBP buying and weaker than forecast Q1 GDP at 0.2% vs. 0.4% expected. Day lows were seen at the Start of the US session but general risk appetite saw good buying and the pair closed near 1.5400 resistance. Overall the GBP/USD traded with a low of 1.5296 and a high of 1.5398 before closing the day at 1.5370 in the New York session.

The Australian Dollar (AUD) was under pressure in Asia as the markets seized upon comments from RBA Governor Stevens that rates are ‘pretty close to average’ and led to speculation of a slow down in future RBA rate hikes. Solid Risk and surging gold in the US session saw the Aussie recover. Overall the AUD/USD traded with a low of 0.9172 and a high of 0.9271 before closing the US session at 0.9260.

Oil & Gold (XAU) was bought aggressively in the US session as the Dollar weakened. Overall trading with a low of USD$1135 and high of USD$1158 before ending the New York session at USD$1157 an ounce. Crude Oil rallied with the rest of the market breaking above the key $85 resistance. WTI Oil Closed +$1.42 at $85.12 a barrel.

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