Dow Jones Down Over 500 Points For 3rd Time This Week

Daily Forex Fundamentals | Written by Easy Forex | Oct 10 08 01:27 GMT |

U.S. Dollar Trading (USD) gained against most of the majors after stocks slumped again and reversed some early USD weakness. Problems with GM credit lines sent market sentiment tumbling. Gold Jumped but oil slipped on the weakening economic outlook. One slight positive was the drop in Weekly Jobless Claims to 478K from 497K last week. In the U.S. share markets, the NASDAQ was down 95 points (-5.47%) and the Dow Jones was down 678 points (-7.33%). Crude Oil closed down -$2.36 ending the New York session at $86.59 per barrel. Looking Ahead, September Fed Budget expected at $70B vs. $112.9B previously. August International Trade Balance is expected at -58.8B vs. -62.2B. The Euro (EUR) continued to recover as sentiment and stocks gained in Europe but fell off again as US stocks crashed. Weak Oil and heavy EUR/JPY selling weighed. German Trade Balance gained to 13.1 Billion Surplus. Overall the EUR/USD traded with a low of 1.3580 and a high of 1.3743 before closing the day at 1.3610 in the New York session. The Japanese Yen (JPY) was sold during the Asian and European Session as the sentiment improved somewhat but things turned around in the US session as stocks slumped again and investors surged back into the safe haven. Weighing on the Market was that Japans UFJ bank may not invest in Morgan Stanley. Overall the USDJPY traded with a low of 98.99 and a high of 101.49 before closing the day around 99.75 in the New York session. The Sterling (GBP) came under pressure in the US session as waves of GBP/JPY selling led the pound towards the key 1.70 level. UK Nationwide House Prices fell -1.3% in September. Overall the GDP/USD traded with a low of 1.7152 and a high of 1.7395 before closing the day at 1.7198 in the New York session. The Australian Dollar (AUD) staged the biggest recovery during the beginning of the day jumping over 400 points before running into a wall of offers above .7100 and then started to fall as US stocks plummeted. Australian Employment change was at expectations with a gain of 2.2K jobs and an increase in the unemployment rate to 4.3% from 4.1% in September. Opened the Asian session on a very weak footing. Overall the AUD/USD traded with a low of 0.6650 and a high of 0.7135 before closing the US session at 0.6900. Gold (XAU) eased off the 900 level when risk sentiment moderated before surging back the key that level during the US session. Overall trading with a low of USD$882.20 and high of USD$882 before ending the New York session at USD$886 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products