The dollar and JPY merely consolidated the losses seen on Thursday in a rather uninspiring session with many currency ranges easily contained within a 50 pt trading band. USD-JPY, which extended gains to 96.18 in early Tokyo, subsequently traded between 95.79-96.08 for the remainder of the session. EUR-USD which traded to highs of 1.3665 in NY dealings, held a tight range of 1.3619-50 after the Tokyo open. Despite recent USD weakness, Fed custody holdings released late Thursday in NY showed foreign official USD holdings at a fresh record high so central banks continue to accumulate the USD. Asian stock markets, aside from Shanghai, were broadly higher in the wake of the U.S. stock gains. U.S. Treasury yields were steady after the pullback in NY on the worse-than-expected jobless claims. Oil prices continue to consolidate above $58 despite further forecasts of falling demand and growing speculative holdings being held in tankers offshore. Gold was little changed and copper prices bounced. Of note was the news that $22 bln in TARP funds will be allowed for six U.S. insurers.
Al Bawaba
