daily report jan 08

U.S. Dollar Trading weakened across the board as the December Private ADP Jobs report suggested -693K job losses vs. -473K forecast. Stocks slumped on concerns the economic slowdown will be longer than first thought. Oil fell over 10% as Weekly Crude Oil Inventories jumped by 6.7Mln vs. 0.7Mln forecast. In U.S. share markets, the NASDAQ was down 53 points (3.23%) and the Dow Jones was down 245 points (-2.72%). The Euro was well supported as the market dumped US dollars. Gains were limited as Oil plunged. Eurozone Data was poor with German Unemployment jumping to 7.6% with Unemployment at 3.102 Mln in December. Pound strength saw the 90 level erased on the EUR/GBP. . Looking ahead, German November Trade Balance is forecast at 14.5Bn vs. 15.8Bn. · The Japanese Yen made solid gains against the Dollar as stocks slumped and fear entered the market. GBD/JPY and EUR/JPY managed small rallies as their respective majors gained but even these fell well off their highs. · The Sterling (GBP) enjoyed a very solid rally breaking above 1.5000 and pushing up to mid 1.52’s before falling back as profit taking appeared before today’s BoE Interest Rate Meeting. EUR/GBP selling saw the GBP advance against all 16 of the most actively traded currencies. Looking ahead, Bank of England meeting widely expected to cut -0.5% to 1.5% from 2.0% previously. The Australian Dollar (AUD) tested Tuesday’s high after the terrible US data but risk aversion saw the AUD fall back to day lows. AUD/JPY selling remerged and steep falls in Oil and Gold weighed.