FX Spread Betting Markets See Euro Find Support at $1.30000 Level
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 16 December 2011
Downgrades here and downgrades there with S&P and Fitch chopping the ratings of various banks not just in Spain and Europe, including the UK, but in the US too.
The moves caused a conundrum amongst spread betting account holders who had welcomed yet another well subscribed Spanish bond auction and positive economic data. This indicated glimmers of hope for both the Eurozone and the US, where initial jobless claims fell to their lowest level since May 2008.
This jobs data from the US is very encouraging for their unemployment and overall economy which has just been through the biggest Thanksgiving and Christmas sales ever and seen its rate of unemployment decline just this month.
It’s little wonder that Bernanke didn’t mention anything about any further stimulus or extension of keeping the Fed Funds rate at low levels beyond the middle of 2013 when their economy seems to be turning a corner.
Not much can be said for our side of the Atlantic, however yesterday did see some encouraging signs from the services and manufacturing core of Europe. PMI data took a little jump higher, although much of it still in contraction territory.
Investors continue to battle against the back drop of this European debt storm and indecision continues to remain rife.
When you get assets like the US dollar spiking you have to start to worry. The normally perceived safe haven of gold has seen a mass exodus and volatility remains high.
The dollar index is back above the 80.00 level, not seen since the beginning of October when stock markets had that crash in August and September.
Maybe this is a sign that the fear has gone too far but few seem willing to take the risk of jumping into the equity market. This is of particular concern as we are supposed to be in the most bullish month of the year.
The FTSE is just about grinding out a gain this morning, holding onto the 5400 level. A downward channel has formed in the past couple of weeks, the upper trend line of which comes in around 5450 and the lower below 5300.
With such little economic data out today and next week being effectively the last one of the year, with Christmas in the way after that, many people are probably tempted to net off their books and call it a year.
Volumes are likely to be low from here on in, but this is where markets can sometimes be pushed to the upside. With triple witching today anything can happen.
On the FX spread betting markets, the euro seems to have found a level at $1.3000 against the dollar where the bears have run out of momentum to push the single currency lower.
Flat to lower this morning EUR/USD is at $1.3010 and with the trend lower still very much negative there are few bulls out there to support the euro. In fact, even if there are any, a move higher would probably be seen more of a bear squeeze than a reversal of the trend.
Holding a narrower range, the gold spread betting market managed to end the session with only a $3.6 loss, finishing at $1570.2 after touching a new recent low of $1560.1 earlier in the session.
It seems that EU officials are struggling to bring positive news to the markets and, with technical indicators showing that the bears are winning the battle, it’s not looking pretty for the yellow brick.
At the time of writing though, there are still some bargain hunters left as the precious metal is trading up at $1590.1.
Crude oil prices started off by climbing higher, helped by signs that the US economy is still on the mend. These signs came in the form of those impressive initial jobless claims and rather optimistic manufacturing sentiment.
However, the price was not able to stay at a raised level for long as markets were flooded with further concerns over the European debt crisis and the black stuff crashed lower to the $103 area.
This morning though a few tentative buyers are pushing Brent higher with it trading up at $103.96.
The above comments do not constitute investment advice and neither Financial Spreads nor Clean Financial accept any responsibility for any use that may be made of them.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
|
Risk Warning: Spread betting carries a high level of risk to your capital. 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.
Article provided / approved by Financial Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110.
'FX Spread Betting Markets See Euro Find Support at $1.30000 Level' edited by SD, updated 16-Dec-11
Related Articles:
Financial Markets, updated 22-May-12
Financial Markets - your daily update on the markets with views and opinions from the insiders, plus a look at...read article: Financial Markets.
Online Spread Trading, updated 15-May-12
A look at the latest spread betting markets plus company reviews, compare prices and details on where to free charts and free live prices....read article: Online Spread Trading.
Bargain Hunters Boost Gold Futures as Greece Secures Bailout Tranche, updated 11-May-12
Buyers returned into the gold futures market yesterday, albeit at a cautious pace. They pushed the price of the precious metal higher and...read article: Bargain Hunters Boost Gold Futures as Greece Secures Bailout Tranche.
Dow Jones Futures Sink as Greek Politicians Fail to Form Coalition, updated 10-May-12
Amid growing concern about the turmoil in Greece, and the failure to put together a coalition government, the Dow Jones extended its losses for...read article: Dow Jones Futures Sink as Greek Politicians Fail to Form Coalition.
French Banks Weigh on CAC 40 Spread Trading Index Over Greek Exit Concerns, updated 09-May-12
The losses for the French banks would be considerable if Greece exited the euro. The CAC 40 index dropped 2.8% yesterday, one of the worst...read article: French Banks Weigh on CAC 40 Spread Trading Index Over Greek Exit Concerns.
Sterling/Euro Financial Spread Betting Market Hits 3 Year Highs on Euro Woes, updated 08-May-12
Sterling is currently gaining from the euros woes. The sterling/euro financial spread betting market is now trading at a three year high. However,...read article: Sterling/Euro Financial Spread Betting Market Hits 3 Year Highs on Euro Woes.
Nymex Crude Oil Futures Fall as US Recovery Remains Weak, updated 04-May-12
The price of Nymex crude oil futures posted a steep fall of $2.68, yesterday. Discouraged by the anaemic US recovery, buyers did not...read article: Nymex Crude Oil Futures Fall as US Recovery Remains Weak.
First Page << 1 2 3 4 5 6 7 8 9 10 11 12 >> Last Page
Daily Spread Trading Index
Index of spread trading articles - the regular Spread Trading Update from Financial Spreads...see Index.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
