U.S. Dollar Trading (USD) stocks fell slightly on Eurozone concerns with Spain warned by Moody’s it may lower the countries rating. November CPI was slightly less than expected at 0.1% vs. 0.2% forecast. November Industrial Output at 0.4% vs. 0.3% forecast. In US stocks, DJIA -19 points closing at 11457, S&P -6 points closing at 1235 and NASDAQ -10 points closing at 2617. Looking ahead, Weekly Jobless Claims are forecast at 420k. vs. 421k previously.

The Euro (EUR) the market was spooked by the ongoing European debt crisis as Moody’s warning came ahead of today EU leaders meeting. EUR/JPY held up better than most crosses on a resurgent USD/JPY. EUR/USD traded with a low of 1.3207 and a high of 1.3379 before closing at 1.3220. Looking ahead, December PMI Services is forecast at 55.4 vs. 55.4 previously.

The Japanese Yen (JPY) broke above Y84 and surged to month highs at Y84.50 on increasing US yields and noticeable change in medium term outlook from many analysts. The multi year down trend found support near all time lows at Y80 and is beginning to creep higher. Overall the USDJPY traded with a low of 83.63 and a high of 84.53 before closing the day around 84.20 in the New York session.

The Sterling (GBP) was under heavy selling pressure after weak jobs numbers with the unemployment rate jumping to 7.9% vs. 7.7%. Cable slid to the 1.55 handle with very limited bounce. Overall the GBP/USD traded with a low of 1.5529 and a high of 1.5772 before closing the day at 1.5560 in the New York session. Looking ahead, November Retail Sales are forecast at 0.4% vs. 0.5% previously.

The Australian Dollar (AUD) was sold steadily throughout the day with both USD strength and increasing risk aversion due to the precarious European Situation. AUD/NZD pushed above 1.3300 and is providing some support. Overall the AUD/USD traded with a low of 0.9839 and a high of 0.9975 before closing the US session at 0.9870.

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