It’s been a busy trading session with lots of up-and-down trading action. The CME’s change to margin requirements for Silver traders caused the first shock, with its price falling from $48.15 at the open to a low of $42.50 before recovering to $44.50. It closes at $44.25. This fall in Silver caused a surge in USD short-covering which was then undone as traders successfully targeted a knock-out option at 1.1000 in the AUD/USD. The second surge of USD buying was brought about by the news that Osama Bin Laden was dead. Firstly there was some risk-on trading with a surge in the JPY and CHF crosses and this has consolidated into some more broad USD short covering.

EUR/USD has traded in a 1.4760/1.4863 after opening around the 1.4820 level. The first move was a gradual drift higher before the shock of the big Silver fall saw the EUR/USD fall to 1.4780. It recovered quickly from there as the Silver price bounced and rallied all the way to 1.4863 before steadying. The news that Bin Laden was dead saw more EUR/USD selling emerge but EUR/JPY and EUR/CHF buying were also evident and this off-set some of the selling. Ranges: EUR/CHF 1.2795/1.2850

AUD/USD rallied initially from its NY close near 1.0960 and tried to breach 1.1000 but failed, topping out at 1.0993. It fell from there to 1.0935 when the Silver price collapsed. The next attempt at 1.1000 followed soon thereafter and this time it was successful although dealers say that the protection wasn’t huge this time. The Bin Laden news saw AUD/JPY rise but AUD/USD fall. Ranges: 1.0919/1.1010

USD/JPY failed to break below 81.00 despite many attempts and the news of Bin Ladens death saw the pair spike sharply higher on risk-on plays as well as USD short covering. Ranges: 80.97/81.68

USD/CHF has followed a similar path to USD/JPY, spiking sharply after the late announcement. Ranges: .8621/94

Cable 1.6657/1.6737, EUR/GBP .8852/80