The ECB will most likely keep rates on hold at 4% with further comments on the risk of inflation and downside risks to growth. Clients are still in favour of the Euro, but the Dollar is managing to hold its ground at these levels. The remainder of the week will be important for indices and could be equally important for currency markets with non-farm payrolls tomorrow to follow today's interest rate announcements.
Advert:FinancialSpreads.com >>
Live Prices and Charts, No Commissions, No Fees. Spread Trade on Shares, Indices, Forex, Commodities and more >>
details.
Forex Spread Trading, 5 Dec 07
Currency markets are showing a bit of dollar strength once more as dealers look to cover any positions in front of the BOE, ECB and Fed rate decisions over the next week. It is foolish to risk P/L over market reaction to interest rate changes and so short term Dollar bear positions are likely to be liquidated in coming days.
The Cable spread is down at 2.0550-2.0553 and really seems to be stuck in the 2.0515 to 2.0800 range. A break down below here would run into the 2.0445 support and then the volume support below here all the way down to 2.0265. On the up side, there are actually very few resistance levels, mainly due to the lack of much trading history. Having said that, many dealers find it difficult to buy the pound above here (almost on a psychological level) and this is causing its own resistance to moves.
Forex Spread Trading, 4 Dec 07
On the currency front, the dollar returned to the weak side and this morning is mixed as the Yen tries to regain the bullish momentum of past weeks. Our clients very short of both the usd/yen and gbp/usd cross rates making for a yen vs sterling play as the biggest game on the open. The pound has managed to hold onto the low 220's support versus the yen but has (on the other hand) not made a swift return to the 230 level. There seems to be certain reluctance at 129.30 to take the cross any higher and we failed here on Wednesday, Thursday and Friday last week. Yesterday 228.40 also made something of a resistance to further upside moves. Punters will be watching for any breaks out of these levels to get out of shorts but are, in the main, looking for selling opportunities at the moment.
Forex Spread Trading, 3 Dec 07
The FX markets appear to be reversing the direction of Friday with the dollar weakening again against all the majors as fears over the US economy continue to raise their head. Punters are the right way round on virtually every market as the overriding sentiment is still very Greenback negative but dealers will have to very careful as the hunt for weak dollar shorts may not be quite over just yet. The USD/YEN cross made a spirited attempt to get to the major resistance in the mid 111.00's but seemed to finally run out of steam some way below here at 111.25. The cross rate is now lower this morning at 110.53-110.55 and has traded in a 20 pip range for the last six hours. Look for attempts to shift below 110.45 as this may bring out further sellers and conversely above 110.70 as weak shorts will probably look to cover quickly.
Cable is slightly higher as well at 2.0598-2.0601 but seems to be giving up on the 2.06 level already. There is heavy support at 2.0490 and 2.0410 which are likely to hold us today at least but the trend is beginning to look sterling bearish once more with the crosses going against the pound as well.
Advert:FinancialSpreads.com >>
Live Prices and Charts, No Commissions, No Fees. Spread Trade on Shares, Indices, Forex, Commodities and more >>
details.
Forex Spread Trading, 30 Nov 07
Overnight, in the Sterling / Dollar cross rate, the pound has recovered some of its losses of yesterday after dropping almost 2 cents in the in an almost continuous drift lower. Aside from sentiment it was difficult to pinpoint what was troubling sterling traders. Mr King's comments may have led expectations of lower rates. There is minor support at 2.0605 which, if broken, may tempt further selling down to the medium term trend line below 2.0500. The long term bull trend is currently at around 2.0190 and on pull backs we have seen the market bounce off this.
The dollar has held onto the gains against the Yen but seems to have run out of a bit of Puff above 110.20 so the sellers may be tempted to chance their arm again on the down side. At the current price of 110.16-110.18 it is difficult to get excited either up or down but if we fail to remain on the side of the angels today we can possibly expect to see sellers later in the session before the weekend.
Forex Spread Trading, 29 Nov 07
Nationwide house price data has come in lower than expected and as a result sterling has taken a bit of a hit. The first monthly fall reported since February 2006, reverses the surprise October gain of 1.1%. The annual rate is now down to 6.9%, the lowest since Aug 2006. Sterling has once again retreated from 2.0700 in an aggressive move lower but the overall trend appears to remain in tact, at least this is what clients seem to think overall, believing that today's move lower is a buying opportunity.
Advert:FinancialSpreads.com >>
Live Prices and Charts, No Commissions, No Fees. Spread Trade on Shares, Indices, Forex, Commodities and more >>
details.
Forex Spread Trading, 28 Nov 07
The dollar has returned to the trenches and is putting up a spirited resistance. The Yen / US Dollar cross has managed a return to 109 after pre US trade yesterday saw Europe trying to force it lower before the Yanks came in on the buy side. As mentioned yesterday, weak Dollar bears are being hunted and shot but this should not detract from the fact that the greenback is on a downward trend. There appears to be some resistance just above 109.00 versus the yen and we are seeing renewed selling here but on any close above 109.10 we may see a push to take out more soft sellers.
The pound is struggling to hold onto the small gains made yesterday and is now off 85 pips against the dollar at 2.0604-2.0607. There is not actually much to go for at this level. This price in the past has been seen as a point on the way to somewhere else. The bears will be looking for a return to the trend line at around 2.0450. The Bulls will be hoping that this is not a move (as mentioned) on the way to a lower price. The pound seems to struggle above 2.07 and we have seen several attempts over the past week to break into a high range but all have been defeated. Punters (as ever) should be wary of sudden shifts here as confidence seems to be slipping.
Forex Spread Trading, 27 Nov 07
The FX markets are having one of those reversal days with the Yen taking a pounding across the board and even the Euro giving up a bit of ground as dollar shorts get squeezed. The vote of faith in not just Citigroup but by association the dollar as well from one of the OPEC members has given the hard pressed buck something to cheer about.
With the Dollar now above 108 again against the Yen we are seeing some small buying from punters looking for follow through but it must be said that if it takes a $7.5 billion cash move to just regain one cent then the momentum is probably still on the downside. For today though there is the distinct whiff of a bear hunt going on as weak dollar shorts are flattened in the rebound. The problem in much of this is that the cost of carry on a losing position is quite difficult to take. 107.00 was a cusp point for 2004/2005 and can now be considered as good support so a bounce from here is not unreasonable, especially as we have fallen so far already in just a few weeks. Ten cent falls are not usual for the dollar even these days and over the past five years have generally been seen as blow out moves which have formed solid bases. Bears have had a good run but it is always dangerous to assume that the market will be forever favorable.
Forex Spread Trading, 23 Nov 07
In FX the dollar has taken an overnight pounding and as feared in yesterday's comment the failure of the Greenback to get back above 109.15 vs the Yen has led to further deterioration. The cross is now at 107.69-107.71 off another 80 pips and we are now at a two year plus low with the charts, frankly, looking very grim. We have now dropped from 115 to the current level in just a couple of weeks without a serious rebound and my comments yesterday of 101.68 being the bear target is looking attainable. On the plus side there is a huge amount of volume support at the current level going back three or four years and there is a good support between 107.00 and 107.40 which may help out.
Sterling remains the middle fulcrum, strong against the dollar weak against everything else. Housing on the continent is getting dearer and dearer for UK investors and with rates in Euroland remaining firm the huge outflow of property money to sunnier climes may be waning. As mentioned several times the sterling yen cross is looking problematical and a break and close below 221.00 may trigger some serious unwinding of longs. Carry returns are still very favourable (especially with the Sterling 3mth Libor so expensive) but the recent falls will be causing fewer and fewer adherents to get involved.
Advert:FinancialSpreads.com >>
Live Prices and Charts, No Commissions, No Fees. Spread Trade on Shares, Indices, Forex, Commodities and more >>
details.
'Forex Futures Trading' by DB, updated 07-Dec-07
For related pages also see:
Forex Spread Betting, updated 24-Jul-08
Where to find the best Forex Spread Betting value? We compare FX spreads like the GBP-USD and EUR-USD plus the latest Forex spread trading news, where to find free FX charts and...read article. Forex Trading, updated 20-Jun-08
Compare Forex spreads. Compare EUR / GBP / USD / YEN spreads. The latest forex trading news, where to find free Forex charts and...read article. Spread Trading FX, updated 02-Jun-08
Your guide to FX spread trading, regular forex articles, spreads comparison tables and your questions answered, where to find free FX trading, free FX charts, live prices and more...read article. GBP / JPY Spread Betting, updated 28-Feb-08
GBP/ JPY trading information, where to find free GBP / JPY charts and prices, how to spread bet on Forex, including the GBP/ JPY...read article. EUR / JPY Spread Betting, updated 28-Feb-08
EUR / JPY trading information, where to find free EUR / JPY charts and prices, how to spread bet on Forex, including the EUR / JPY...read article. GBP / USD Spread Betting, updated 28-Feb-08
GBP / USD trading information, where to find free GBP / USD charts and prices, how to spread bet on Forex, including the GBP / USD...read article. USD / JPY Spread Betting, updated 28-Feb-08
USD / JPY trading information, where to find free USD / JPY charts and prices, how to spread bet on Forex, including the USD / JPY...read article. EUR / USD Spread Betting, updated 29-Feb-08
If the Euro is pushing ever higher against the Dollar and the Pound that poses a few questions. Who offers narrow FX spreads? How to trade the Euro FX markets? Where to find live Euro prices and charts? We've got the answers...read article. EUR / GBP Spread Betting, updated 28-Feb-08
EUR / GBP trading information, where to find free EUR / GBP charts and prices, how to spread bet on Forex, including the EUR / GBP...read article. Forex Trading April 2008, updated 25-Apr-08
Forex market update: Looking at the Forex Spread Betting markets the Pound actually managed a good day for a change as the Euro and Yen suffered. Of course the real winner was the US Dollar. Cable is now at the bottom of it recent range with dealers probing for any weakness below...read article. Forex Spread Bets April 2008, updated 11-Apr-08
Forex market trading update: The dollar is getting a knock this morning weaker against the majority of other currencies. Sterling attempted to make some sort of recovery against the euro yesterday dipping below the £0.8000 mark. However, since...read article. Forex March Spread Trading, updated 28-Mar-08
Forex markets: On the FX markets the Dollar continues to hold it own for the time being but the pound seems to have hit something of a brick wall overnight. All the majors are unchanged except for the pound which is down 80 pips against the greenback (under $2 again)...and is at a new all time low versus the Euro at £0.7894 which means that we are now over 15%...read article. Forex March Spread Betting, updated 14-Mar-08
Forex market information: Looking at the Forex markets the added dollar liquidity push had a curious effect in that the greenback actually rallied yesterday afternoon when many would have expected the opposite. There may be a feeling that the Fed may...read article. Forex February Spread Trading, updated 29-Feb-08
Forex market information: Against the Dollar, Sterling has given up 200 pips from the highs of yesterday (oddly enough the same highs as the last rally in late January) and is now back down at $1.9770 - $1.9773. The resistance at $1.9750 which acted to hold back the...read article. Real-time Forex Prices and Charts, updated 15-Feb-08
Forex pricing information: On the currency trading front we are very quiet and with no news expected today it may well remain that way for the early trading session. GBP / USD looks to be quite happy at levels near to $1.9700 but we have made a habit of...read article. UK Forex Spread Trading, updated 01-Feb-08
UK Forex Spread Trading: FX markets are absolutely comatose at the moment and we are trading and re-trading over the same ranges. The pound is pretty much...read article. Spread Betting on Forex, updated 18-Jan-08
Your FX trading questions answered, tips on getting free Forex charts, real time prices plus free...read article. Forex Trading Online, updated 21-Dec-07
Find out where you can Trade FX Online for free plus your FX trading questions answered, tips on getting free FX charts, real time prices and...read article. Forex Futures Trading, updated 07-Dec-07
Where to trade Forex Futures plus updated Forex trading news and the most popular Forex questions answered....read article. Forex Broker, updated 23-Nov-07
Where to find free Forex Brokers plus regular Forex financial trading news as well as the most popular Forex questions answered....read article. Forex Platform, updated 09-Nov-07
Where to find free Forex Platforms plus updated Forex trading news as well as the most popular Forex queries answered....read article. Forex Software, updated 26-Oct-07
Where to find free Forex Software information plus updated Forex trading news as well as the most popular Forex queries answered....read article. Forex Prices, updated 04-Feb-08
Where to find free Forex Prices plus updated Forex news as well as your top Forex questions answered....read article. Spread Bet on Sterling / Yen (Sept) - FX Online Spread Betting, updated 16-Aug-07
The Yen has profited from the current state of the markets. Investors continue to reduce their risk and have been pulling out of the 'Carry Trade' market. The NZ Dollar has fallen nearly 14.5% and the Aus Dollar 10% again the Yen. Sterling has also seen falls against the Yen. The heavy forex trading...read article. Financial Spread Betting Blog - FX Trading, updated 13-Aug-07
The popular Forex market of EUR/USD has been decreasing and is at its lowest value for a month. Is it worth backing the market to return? At the moment the EUR / USD (Sept) market has a quote of 1.3631 - 1.3639. As with many markets...read article. Spread Bet on Forex, updated 16-Jul-07
When you Spread Bet on Forex you are betting on a market with high liquidity. There are a large number of trades in key markets such as £/$. A FX market trading is often available 24hrs a day....read article. FX Spread Betting, updated 20-Sep-07
The Dollar dropped to a record low of $1.40 against the Euro after the pressure on the US currency increased with the new cut in US interest rates. Many felt that the $1.40 was a psychologically important barrier and breaching that could put further pressure on the Dollar. However it looks like the spread betting companies don't think that will happen. The EUR / US Dollar December market is currently trading at 1.4055 to 1.4063 with FinancialSpreads.com...read article. Spread Betting on FX, updated 11-Feb-08
Online forex spread betting news and free live prices. In the Forex markets GBP v USD fell to a 14 month low and is trading below the $2 mark to around $1.9945. With Financial Spreads, the Sterling / Dollar (December) market is trading at 1.9971 - 1.9974 suggesting that they don't think there will be a quick recovery....read article. Forex Spread Betting, updated 26-Nov-07
Foreign exchange betting. Currencies fluctuate for a number of reasons eg changes interest rates, speculative trading and central bank intervention. If you are looking for FX trading information ...read article.
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more! All Free - Click here
Risk Warning: Spread betting carries a high level of risk to your capital and you may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.
