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.