Spread Trading 30 Nov 09 - Sterling and Dollar Exchange Rates Weaken

Spread Trading 30 Nov 09

Today's update see » Financial Markets.

Spread Trading 30 Nov 09

As the Americans recover from their Thanksgiving hangovers we’ll see later on today just how they will react to the movements in financial markets at the end of last week.

This morning has already seen Middle Eastern markets taking a hit, but more because they’re catching up with other global indices that were open on Thursday and Friday while they were closed for Eid.

On the whole, the markets have recouped much of their losses from the Dubai debt crisis with a good reversal on Friday and a move to the upside from Asian markets such as the Nikkei and the Australian index.

There had to be something to trigger a sell off at some time and the fact that it happens to be the Dubai issue is just a case in point as the markets have looked over extended for a few weeks now with some having failed to mark new highs for 2009.

While many banks do have exposure to the UAE, the sort of money we are talking about pales in comparison to what sums of money have been pumped into western global economies to prop them up.

As a result, some banking stocks are staging a small recovery this morning with HSBC higher at the open.

The market as a whole though is still showing signs of discontent with the FTSE recording losses this morning, down some 20 points at 5225, but off the lows just above the 5200 mark.

On Friday the market bounced off the low of the March upward trend line which now sits around 5150 which is an area that should offer support in the near term.

To the upside for the FTSE, near-term resistance is seen around 5275 and 5300 to 5325 and judging by clients past behaviour no doubt we’ll see some selling if we reaches those highs. For the medium term support is seen around 4950 and to the upside resistance is around 5550 to 5570.

The UK market also hasn’t been helped by much worse than expected confidence data. The number fell for the first time since January after gradually recovering throughout 2009, so this comes as a slight blow ahead of the Christmas season.

The impending rise in VAT back to 17.5%, and possibly even higher, is hanging over the consumer like the Sword of Damocles. On top of this, rising unemployment and the prospect of further job cuts, well into next year and possibly even 2011, is dawning on the consumer as a grim reality.

For the remainder of today economic data is thin on the ground with UK mortgage approval numbers and in the US the Chicago PMI number being released at 14:45 UK time.

The PMI number is expected to come in lower, but above the crucial 50.0 mark, but there is risk to a bigger decline as output in the car industry takes a tumble. The market will probably not react kindly to a figure sub 50.0.

Currency markets are mixed with both the Dollar and Sterling taking the brunt of any selling that’s going on. The Dollar is still firmly on a downward path, with the Dollar index down again this morning, but is still trading off its lows.

The Yen continues to appreciate with ¥86.85 providing resistance for USD/JPY and bears will be targeting the ¥85/84 region which was tested briefly at the end of last week.

Sterling is better against the Dollar, but purely down to Dollar weakness as against other crosses it continues to be hit by the Dubai issue.

Sentiment has been Sterling negative for much of the latter part of 2009 and doesn’t look to be improving as investors favour the likes of the Euro, Australian Dollar and Yen over poor old Sterling.

Gold hasn’t moved at all this morning. A rare sight considering Friday’s action which saw wild swings, reminding us just how much the price is susceptible to a sharp correction if all of a sudden the bulls run for the exit.

Crude Oil is a little better on the back of the Dollar weakness this morning after it too experienced a similar bout of serious volatility on Friday however the $80 mark continues to remain a difficult hurdle to over come for crude.

Under no circumstances are the comments and the information provided herein to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice.

Neither CleanFinancial.com nor Financial Spreads or any contributing author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Financial Spreads » "With FinancialSpreads.com you get all the advantages of
Spread Betting as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." read Financial Spreads review.

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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

'Spread Trading 30 Nov 09' edited by SD, updated 30-Nov-09

Related Articles:

Financial Markets, updated 24-May-13
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 23-May-13
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.

FTSE to Underperform as Constituents Go Ex-Dividend, updated 24-Apr-13
Although today's start is expected to be firm, the FTSE is set to under perform its peers as some constituents go ex-dividend, knocking 9 points off the index. The corporate earnings in the US continued to...read article: FTSE to Underperform as Constituents Go Ex-Dividend.

Renewed Demand Sees the Gold Rebound Continue, updated 23-Apr-13
Gold continued its rebound yesterday, with the online spread betting market gaining $17.7 to $1,426.2, on reports of renewed demand for coins, bars and jewellery. After suffering from such a violent...read article: Renewed Demand Sees the Gold Rebound Continue.

Index Trading: Nikkei Hits 5yr Highs as Monetary Policy Remains Unchallenged, updated 22-Apr-13
Asian markets are also trading sharply higher, led by the Japanese Nikkei which is nearing a 5 year high. Japan's optimism seems to be founded on the fact that they didn't receive any explicit singling out at the...read article: Index Trading: Nikkei Hits 5yr Highs as Monetary Policy Remains Unchallenged.

Dow Jones Falls as US Corporate Earnings Disappoint, updated 19-Apr-13
The US corporate earnings season continued to disappoint investors yesterday with the Dow Jones falling 110 points to 14,496 as a result. The pessimism was also supported by weaker than anticipated economic...read article: Dow Jones Falls as US Corporate Earnings Disappoint.

Poor Eurozone Ecostats Weaken the EUR/USD Spread Betting Pair, updated 18-Apr-13
The economic data coming out of Europe yesterday was pretty dismal, with auto sales reaching a 20 year low. Consequently, the euro dropped versus the dollar, effectively giving back the previous day's gains by...read article: Poor Eurozone Ecostats Weaken the EUR/USD Spread Betting Pair.

Improved US Housing Data Boost the US Crude Oil Spread Betting Market, updated 17-Apr-13
Better figures for the US housing sector bolstered crude oil demand yesterday, pushing the price of a barrel of US crude oil up by $1.48 to $88.83. That saved the day as crude prices had fallen to an intraday low of...read article: Improved US Housing Data Boost the US Crude Oil Spread Betting Market.

Slowing Chinese Economy Spurs Gold's Largest Drop in 33-Yrs, updated 16-Apr-13
Those trying to catch a falling knife after Friday's plunge were in for a nightmare session yesterday as the gold spread betting market posted an even bigger drop. The precious metal lost an incredible $129.2 to...read article: Slowing Chinese Economy Spurs Gold's Largest Drop in 33-Yrs.

Bearish Momentum Sees the Gold Spread Betting Market Break Below $1500, updated 15-Apr-13
The bearish momentum in gold undoubtedly gathered pace on Friday as the market price crossed below the psychologically important $1,500 mark. In a violent nosedive, the precious metal plunged $72.7 to...read article: Bearish Momentum Sees the Gold Spread Betting Market Break Below $1500.

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 daily Spread Trading update from Financial Spreads, for more articles see the Spread Trading News Index.

Q) Average Trading Results?

A) Get free trading tips, offers, price updates, important news and more! All Free - Click here!

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.

1) Daily Trading Tips

2) Financial Tips

3) Financial Tipping