FTSE, CAC and DAX Indices Trading Up
The FTSE, CAC and DAX opened up in mildly positive fashion.
US markets rallied late into the close to push the wider benchmark S&P 500 Index into positive territory for the year.
Other markets such as the FTSE still have some way to go to achieve this milestone, but at least it is a positive sign.
Yesterday in the US, earnings, data and sentiment all combined to push markets higher and that momentum carried over onto Japanese markets overnight.
Today’s market moving events include UK Public Sector Net Borrowing at 08.30 GMT. This is followed by a rate statement from the Bank of Canada at 13.00 GMT where rates are expected to stay unchanged at 0.25%. Finally, Fed Chairman Ben Bernanke speaks at 14.00 GMT.
Aside from this, we have some major US companies releasing their latest profit numbers.
Before the open of US markets, we have Caterpillar and Coca Cola and after the bell with have statements from Apple, Starbucks and Yahoo amongst others. Earnings from these companies could have a major impact on the Dow Jones from Midday.
If economic data flow remains positive and US companies continue to surprise to the upside with their profits, there could be fireworks today.
GBP/USD FX
In the FX markets yesterday there was a flight from safety with the dollar and yen getting hammered. Today there’s been a partial reversal as traders book sizeable gains from yesterday.
One of the biggest reversals has been on the GBP/USD which has dropped over 0.5% in early trading. With UK public sector net borrow due at 08.30 GMT, this makes the GBP/USD today’s pair in play.
The $1.6500 appears to be acting as an overhead resistance level with the GBP/USD struggling to make much headway above this.
A Financial Fixed Odds break-out trade might be a good way to play this with the barriers set to around $1.6250 and $1.6750 over the next 3 days.
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