Trading Update
27-Jan-14, 8:59am:

Dow Jones Sees a Huge Sell Off



The Dow has seen a very nasty fall. There’s a small bounce this morning, but that could a dead cat.

The FTSE 100 is seeing a similar move with the banks and mining stocks doing particularly badly.

It could be a rather busy day.



Update by Craig Inglis, Head of Product Development,
27-Jan-14, 11:14am:

Good Times for Gold Buyers?



Gold has broken up through resistance at $1,268.

Worries over emerging markets is causing a lot of uncertainty for investors and the major stock markets are seeing a major sell off. Guide to Gold Spread Betting

Whilst company valuations weren’t at their historical peaks last week, shares were still pretty expensive. There may not be that many stock market buyers just yet.

All this is good news for gold, in times of uncertainty, investors like to move into gold.

So far this morning, the markets have seen a small rebound but that might just be a dead cat bounce.

If so, I’d expect more stock market selling and it’s not difficult to imagine gold getting another leg up.

A word of warning

The financial markets can have very short-term memories.

Whether it’s in a day or two, or in a few weeks, once equities stabilise, the money may simply move out of gold and back into stocks.

Sadly, any bounce for gold could be short-lived.

Update by Jacob Wood, Editor,
27-Jan-14, 5:35pm:

FX Technical Analysis



In this trading video, James Chen of City Index discusses the latest technical analysis and support/resistance levels for several key FX pairs.

Markets include EUR/USD, GBP/USD, USD/JPY and AUD/USD, as well as the gold market and the FTSE 100.



Update by
28-Jan-14, 9:05am:

It’s Not Just the Stock Markets that are Volatile



The stock markets are bouncing back but they are also bouncing between support and resistance levels.

In the FX space, dollar-yen is below the 50-sma but has bounced off support.

There is downward pressure on euro-dollar and whilst sterling-dollar is volatile, sterling is still looking strong.



Update by Craig Inglis, Head of Product Development,
28-Jan-14, 9:32am:

UK Q4 GDP Update



UK Q4 GDP is in line with expectations at 0.7% vs. 0.8% in the last quarter.

Therefore, as expected, the YoY rate is 2.8%.

Update by Jacob Wood, Editor,
28-Jan-14, 10:27am:

Analysts Say HSBC Might Have a £70bn Capital Hole



According to Forensic Asia, a research company, the UK bank has overstated the value of the assets on its balance sheet by more than £50bn.

Not only that, but the bank will need a £70bn Capital Injection (within the next 6 years).

For more on this see HSBC Faces £70bn Capital Hole.

Update by Jacob Wood, Editor,