Last night the Dow Jones managed to close in the black for the eighth trading day on the bounce. Reading that statistic, you might expect the week to be better than it actually has been.

Most world stock markets are up on the week, but the gains have been negligible by recent standards. Still, the bulls have shown impressive resilience with the bears unable to drive markets down with any great strength.

This morning the FTSE, DAX and CAC are taking their lead from the US and have opened up around 0.7% to 1% higher.

This morning we have UK GDP figures at 08.30 BST and this is expected to the standout economic announcement for the day. This afternoon with have US personal spending data and consumer sentiment figures, but these are expected to have only a medium impact on markets.

Japanese Yen on the Defensive

The Japanese Yen is in play again, this time on the defensive though. Buoyed by the ability of equity markets to hold their ground, the risk takers are dropping the Yen in favour of the Euro, Dollar and Pound.

Of the commodity currencies, the Canadian Dollar has been range bound this week especially against the US Dollar. If oil prices continue to stabilise, the USD/CAD could continue its previous down trend and hit C$1.08. A Fixed Odds No Touch trade could be one way to play this over three days.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Last night, the Dow Jones managed to limp to a fifth consecutive positive session.

The gains were tiny and other US markets such as the S&P 500 and the Nasdaq closed down on the day. Although the closing levels last night were nothing to write home about, the near 1% reversal from the highs of the day sent ripples through Asian markets.

A return of more cautious trading has spilled over into the early European session with the FTSE, CAC and DAX opening down over 0.5%.

Today is a busier session than yesterday with a number of middle tier economic announcements. At 08.30 BST we have UK mortgage approval levels followed by the latest US house price data at 13.00. Following this at 14.00 we get US consumer confidence figures and MPC member Bean speaking after the UK close.

GBP/JPY Heads Towards Resistance Level

The cautious trading seen on stock markets has made its way onto forex markets with the Dollar and Yen building on yesterday’s gains. On balance, the Pound is bearing the brunt of the selling, dropping 0.4% against the Dollar and 0.85% against the Yen.

The GBP has bounced off the ¥153.50 level three times already this month and it looks to be heading towards this level once again. Could it be fourth time lucky for sterling this time?

With oil prices still holding around the $70 level, there are indications that the bulls aren’t done yet, which could be good news for the GBP/JPY. If the pair hits the ¥153.50 level once again, a Double (Up) Trade could be one way to play it.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

The FTSE, CAC and DAX have started the trading week with solid gains, rising between 0.3% and 0.6% at the open.

Most of this move is a follow on from the strong performance of US equities on Friday evening. Up until half an hour before the markets opened, European shares were set for an even bigger gain after a positive opening from Asian markets.

However, just before the open there was a slight lurch in favour of the sellers and European markets pared their gains. Still, the bulls can be reasonably happy with their lot and the rally continues.

Today there are very few economic announcements of note. At 09.00 BST we have European Industrial new orders and Canadian retail sales at 12.30 BST.

Commodity Bulls Buy into AUD/JPY

The Dollar is holding up reasonably well this morning, making small gains against the Euro and Pound. The Yen hasn’t has such a good morning, but has at least managed to reduce the morning’s opening deficit at the start of the London session.

The AUD/JPY is one of the day’s biggest gainers as commodity bulls buy into the currency. It’s up 0.9%, but off the peak of the day. A Fixed Odds No Touch Higher could be a way to play this if the slight pullback continues and, with the trigger set to ¥80.00 over 1 day, could return 147%.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

At the start of the week, world stock markets encountered a severe sell off that threatened to question the strength of the bull’s resolve.

Yesterday, the bulls passed that test with US markets erasing Monday’s losses. The argument over the sustainability of the rally that has seen stocks rise 15% since July has been won….for now.

This morning, the buyers have taken their foot off the pedal and the FTSE, CAC and DAX have opened down around 0.5%. The morning’s main economic news items are US existing home sales at 14.00 BST with Fed Chairman Ben Bernanke speaking at the same time.

Commodity Currencies Reverse Declines

The Asian session saw gains for the Yen against the Euro and Pound, but those gains are being reversed as the London session starts in earnest.

The commodity currencies of the Canadian Dollar and Australian Dollar are also reversing earlier declines as optimism seeps back into markets.

The CAD/USD has reversed early declines, but is at a turning point so any further gains for the Canadian Dollar could be muted. A Fixed Odds Double (Down) trade for the day may be the good way to place this.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Stock markets showed tremendous resilience yesterday, with the benchmark S&P 500 almost erasing the big losses from Monday.

This morning, European markets have opened strongly with the FTSE, CAC and DAX all rising by over 1% from the open. Monday was the worst sell off for some time, but it has been swept away as the bulls regain their confidence.

If that was the worst the bears can do, world stock markets could have higher to go in the coming months. As a sign of this renewed optimism, oil prices have hit a nine month high at $74.29.

Today’s stand out economic announcements are UK retail sales at 08.30 BST and US unemployment claims at 12.30. If the US economy shows further signs that the worst is now over, today’s nascent rally could have further to go.

Yen Suffers as Traders Take More Risks

Compared to the big swings seen over the last week or so, it’s been a relatively tepid day so far on forex markets. As usual, it’s been the Yen pairs that have seen greater volatility so far this morning.

The Asian session saw a renewed appetite for risk with the Euro, Pound and the Australian and Canadian Dollars all gaining against the Yen.

With only a couple of major news items due today, and forex traders seeming to pause for breath, today could be a good day for a Fixed Odds Barrier Range trade on the GBP/USD, especially if there is no reaction to the UK retail sales.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

After ‘turnaround Tuesday’ brought rallies of 1% or more on most major stock indices, Wednesday morning has brought things back down to earth.

Overnight the Chinese stock market lost 3.2%, bringing it very close to a 20% loss since its peak at the start of the month.

With 20% losses being seen as an official ‘bear market’, investors are hoping that the decline won’t be the undoing of the spectacular rally seen since July.

The FTSE, CAC and DAX all opened up around 0.8% down, wiping out all or most of the gains made in response to Monday’s sell off.

Today’s main announcements are the release of the meeting minutes from the last MPC meeting at 08.30 BST and Canadian Core CP at 11.00.

Traders Retreat to Dollar and Yen

Predictably, the falls in equity markets have led to a flight back to the perceived safety of the Dollar and Yen.

Yesterday the Pound was strong after UK inflation showed some resilience, but this morning Sterling is falling faster than the Euro against both the Dollar and Yen.

At least the GBP/JPY is managing to hold above Monday’s lows, which is more than can be said for the EUR/JPY.

The commodity currencies, namely the Australian and Canadian Dollars, are also under pressure despite a big recovery in oil prices yesterday.

The GBP/JPY is still yet to revisit its Monday lows, but if this reversal of confidence gathers pace the Pound could have further pain to come.

A Fixed Odds One Touch trade predicting that the GBP/JPY will hit ¥155.50 in the next day could return 146%.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

With dramatic falls of over 2% on US markets last night, European traders will have reached their desks with some trepidation.

They will have breathed a sigh of relief as financial markets are showing some resilience this morning.

The FTSE, CAC and DAX opened up around 0.5% higher and, while this won’t eradicate the losses from yesterday, it is certainly a start in the right direction.

Aside from the Chinese stock market plunging 6% yesterday, there weren’t any major catalysts to point to, aside from the fact that stocks had run up too far too quickly.

Absent of any new major stimulus, the bulls ran out of steam and finally gave way to the sceptics who were selling the rally with no small amount of pain along the way.

Today we have UK CPI and RPI at 08.30 BST. These two inflation measures could see some strong reactions in the FTSE and Pound.

At 12.30 we have US building permits following by PPI.

FX Markets Attempt To Reverse Recent Falls

Forex markets are attempting to reverse the major movements seen yesterday and late last week.

Yesterday the Yen and the Dollar reigned but now the Euro, Pound and Australian Dollar are fighting back.

The Euro/Yen in particular looks strong today, recovering most of yesterday’s losses. This rally could be muted though until stock markets really grab the bit between the teeth as a sign of returning appetite for risk.

A Fixed Odds No Touch Higher could be the best way to play this, with the barrier set just above yesterdays opening level at ¥135.25 for one day.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

It’s been a very poor start to the trading week with the FTSE, CAC and DAX all down around 1% in early trading. Asian markets endured a torrid session with Japanese companies such as Sony falling around 3%.

The ‘Goldman Sachs’ rally that started in July is starting to run out of steam as the bulls appear to have run out of positive catalysts to keep momentum pushing higher.

It will be a crucial week for those who see the economic glass as half full. If markets can at least hold around these levels without too much significant damage being done, the bulls could come back refreshed and take markets even higher.

Not much on the economic news front today, with US TIC long term purchases the stand out announcement at 13.00 BST today.

Sterling Suffers As Traders Avoid Risk

Forex markets are mirroring the stock market flight away from risk. The Dollar and Yen appear to be winning the least ugly contest at the moment with the Pound in particular falling out of favour. The Pound is down 0.5% against the Euro, 1% against the Dollar and 1.33% against the Yen.

The commodity currencies, including the Canadian and Australian Dollars, are also being punished after oil fell heavily on Friday, with prices falling again already today.

It’s been a swift, sharp rally for oil and the commodity currencies and any pull back could be equally swift on the AUD/USD. A three day Fixed Odds Trade predicting that the AUD/USD will hit 0.8000 in the next three days could return 500%

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

It was a curious session on Wall Street yesterday with the bulls and the bears swapping positions until a final half hour flourish saw markets push upwards to a 10 month closing high.

So far this morning the FTSE, CAC and DAX have opened up flat with a slightly negative bias as traders wonder what to make of yesterday’s market action.

Yesterday Europe posted a surprising recovery in the second quarter and today we have more European announcements that could have an impact on the markets.

Eurozone CPI is expected to come in at -0.6% so traders will be looking for any major deviation from this.

Today’s main event is US Core CPI at 12.30 BST. Analysts are expecting a slight worsening in these figures month on month. Any improvement could be seized upon as more evidence that the US is starting to recover.

Yen Makes Progress Against Sterling and the Euro

Another reversal yesterday, this time with the risk takers losing out, the Pound and Euro closed down against the Yen.

This morning it was all quiet going into the London session, but it looks as though forex pairs are beginning to make their move for the day.

The Yen is making further progress against the Pound and Euro with Sterling looking the weakest currency of the day overall.

The GBP/JPY is down around 0.5% in early trading. ¥156.00 could be the next target with a Fixed Odds One Touch trade possibly the best way to trade this.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

The FTSE, CAC and DAX opened up flat, but today promises to be far from quiet. Financial stocks led Wall Street to its worst one day drop in more than a month as influential US congressmen warned that the Treasury had not done enough to remove toxic assets from banks.

As unwelcome as the sell off was, it has to be put in the context of the near 50% gains made since the March lows. At the height of the crisis a 1% down day would have been a quiet day.

We’ve a busy day ahead of us today, starting with important British employment figures at 08.30 BST. Claimant count change is expected to rise from 23.8k to 25.5k while the unemployment rate is expected to rise marginally to 7.7%.

At 10.30 BST we get the Bank of England Inflation Report alongside a speech from Governor King which is likely to send shockwaves through the GBP/USD.

Over in North America, it also promises to be a busy session with the latest Trade balance figures released for Canada and the US at 12.30 BST. Then at 18.15 BST we get the event that many traders have been waiting for, the rate statement from the FOMC.

Traders will be keen to learn if Bernanke and co will be following the Bank of England’s lead in expanding its Quantitative Easing activities.

High Activity Encourages FOREX Fluctuations

With so much activity already today, it would almost be easier to examine which pairs hadn’t moved much this morning. Essentially, Wednesday has seen an extension of the moves that started on Monday.

Risk taking is becoming increasingly unpopular as traders shun high interesting currencies such as the Australian and New Zealand Dollar.

The AUD/JPY is down nearly 2% on the day. The Yen is strong against the Euro and Sterling with both the EUR/JPY and GBP/JPY falling around 1%.

Most currency pairs appear to be in play today, but the GBP/USD so far hasn’t moved much in comparison to the Yen pairs. This could all change with FOMC meeting at 18.15 BST, with a Fixed Odds Breakout Trade a potentially a good way of trading the pair today.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.