The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
As of 05.00 AM GMT, the forex markets are very quiet with no major movements made so far.

It’s unlikely to stay like this all day though with a couple of heavy announcements due today. The first major news item is UK public sector net borrowing due at 09.30.

With government spending, borrowing and budget problems having a direct impact on the British Pound, traders will be analysing this announcement very closely.

Borrowing is expected to jump to £14.6bn, compared to £4.3bn last month. Any significant deviations from this number could see some fireworks in the GBP/USD & GBP/JPY today.

Next we have US inflation data (CPI) at 12.30 with core inflation expected to rise slightly to 0.1% from -0.1% in February.

At the same time we get the latest US unemployment claims with a slight drop on last month expected.

Finally at 14.00 the Philly Fed manufacturing index will provide further hints as to the strength of the US recovery.

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A daily look at the Markets from Joshua Raymond, Market Strategist, City Index.

“A stronger banking and mining sector in Europe, as a result of the Fed comments last night and advances in Copper and gold prices, has pulled European Indices higher by just over 0.5%.

Today being St Patricks Day and with the Cheltenham Festival in full flow there is every chance that with volumes of beer and guinness in full flow, we may not gain too much of an insight into investor sentiment.

Trading is rather subdued and short of those traders who must have one eye on the Cheltenham Festival, the FTSE 100, DAX and CAC are all at levels where there seems to be collective indecision as to whether to add to positions or consolidate. In this scenario the markets tend to drift sideways and this is exactly what we are seeing right now.

We also have quadruple witching day to come at the end of this week and so naturally this is playing on the minds of investors too.

Arriva takeover talk

Arriva has been the talk of the morning in London after shares rallying over 16% to a new 4 month high. The transport company has acknowledged that it has received a takeover approach and this has certainly added a degree of excitement to the market today.

Fed comments boost banks

Comments from the Federal Reserve last night is helping to supplement demand for banking shares today. The Fed pledged to keep interest rates near zero for an extended period and this is putting any fears of a hike in rates in the near term to one side.

UK unemployment boosts sterling

The pound sterling has strengthened considerably today against the US Dollar after a surprisingly large drop in the amount of Britons claiming jobless benefits and as the Unemployment rate held steady at 7.8% when further deterioration was largely expected.

The amount of claims fell by 32,300 in February, the most since 1997 and has raised optimism that UK unemployment is showing signs of stabilisation and could start to retrace, and this has been sterling positive.

Unemployment is a key bellwether in identifying the strength of the economy and the data this morning is being seen by the market as a step in the right direction as the UK attempts to recover from its worst post war recession.”

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The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
After yesterday’s light news day, today is packed with news items with market moving potential

We’ve already had the release of the minutes from the last Australian Central Bank meeting.

The records indicate that the Australian monitory policy committee is likely to keep rates on hold at its next meeting as it expressed concern over the situation in Greece.

At 10.00 we have European CPI (inflation) data alongside German and Europe wide economic sentiment surveys.

At 12.30 we have a bunch of announcements. The most important being US building permits & housing starts. A slight drop on the previous month expected.

Then at 18.15 we have the release of the latest policy statement from the US Federal reserve.

As with past meetings, no change is expected. However analyst’s will look for hints at future policy and the general tone of the report.

So far today the yen is the biggest gainer across the board and especially against the US dollar and British pound.

The Bank of Japan make their latest rate statement tomorrow. Traders are speculating that they will be taking a firmer line with their monitory policy.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
There’s not much economic news due today…

…but we’ve already had a reaction to the latest RightMove House Price Index.

The latest report implied that UK house prices rose by just 0.1% last month versus a 3.2% rise last time out.

A stalling in the recovery of house prices would be the last thing the ailing UK economy needs and the British pound is down this morning as a result.

The GBP/USD is the biggest faller today with the GBP/JPY not far behind.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
Today we’ve already had mixed Australian employment data which is putting pressure on the Australian Dollar (AUD/USD).

Coming up at 13.00 we have a rate statement from the Swiss central bank. Traders have been betting that the Swiss government will be raising rates in the near future as its recession has been relatively mild.

Analysts expect rates to remain unchanged at today’s meeting but the accompanying statement will be examined for any juicy hints. USD/CHF is the pair to watch for this.

At 13.30 we have Canadian & US Trade balance numbers released at the same time as the latest US unemployment claims.

So far forex markets have been relatively quiet with the Australian and New Zealand Dollar weak on the back of the recent Australian employment data.

Overall, then Japanese Yen is having a strong day as traders seek a refuge following unexpectedly high Chinese inflation data.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
The top currency in 2009 measured against the US Dollar was the Australian Dollar (AUD/USD).

The AUD/USD rose by over 40% over the year thanks to increasing interest rates, a relatively stable economy and well regulated banking sector.

But who will be 2010’s top currency?

Many are now pointing to the Canadian Dollar as a good candidate for 2010’s top currency.

Like Australia, it survived the credit crunch relatively well and its banks have been voted the safest for two years in a row.

Its interest rates are still at near zero levels compared to Australia’s 4%, so there’s arguably more room for upside there.

The USD/CAD is currently hovering around the C$1.0200 level, a point which has been seen important support and resistance in the past.

The last time the Canadian Dollar broke the C$1.02 level it led to quick sell off in the US Dollar over 8 weeks down to C$0.9000. Could it happen this time?

You can currently get a potential return of 1345% with a Fixed Odds Bet that the USD/CAD will hit C$0.9000 in the next 70 days.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
So far today, the Asian session has seen renewed strength in the Yen after it took a beating in the second half of last week.

No prizes of guessing which currency is the being hit the hardest against the resurgent Yen, yes the British Pound is once again the morning’s weakest currency.

The GBP/JPY is down 0.72% with the GBP/USD down 0.36%.

The Euro is faring little better against the Yen with the EUR/JPY down 0.5%, but it is the Pound with the broadest base of selling again.

Away from the Pound and New Zealand Dollar, the US Dollar is showing only mild strength against the likes of the Australian and Canadian Dollars.

No top tier economic announcements are due today, but UK trade balance due at 09.30 could have a greater effect on the Pound than usual.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
After last week’s wild ride, it looks as though the forex markets aren’t about to quieten down in a hurry.

In early trading today, the Euro is trading higher after French premier Nicolas offered strong hints that Europe was ready to stand behind Greece if needed.

Adding to the positive note today, ex US Federal reserve chairman Paul Volcker commented that the Greek debt crisis was ‘manageable’.

This morning the EUR/USD is up 0.38% with the EUR/JPY up 0.56%. The US Dollar and Japanese Yen are weak across the board with the Yen the poorest performer today.

Today’s top economic announcements include Swiss retail sales at 08.15 and German industrial production at 11.00.

Canadian housing starts are out at 13.15 so keep your eyes out for the USD/CAD around this time.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
After a busy economic news yesterday, here’s how the land lies currently:

• The Bank of England & ECB provoked little reaction with interest rate statements that came in largely as expected. Both kept rates on hold and the Bank of England maintained quantitative easing at current levels.
• Between these two currencies, the Pound was dominant, rising by 0.5% against the Euro (EUR/GBP).
• The Greek government returned to the market with a surprisingly well received bond placement. Despite this, the Euro was down heavily against the Pound and US Dollar.
• There are still worries about the outcome of the meeting between the Greek premier and German premier Angel Merkel today. Both parties are keen to stress that the meeting is not about an aid package for Greece, but the markets will be awaiting the outcome of the meeting eagerly all the same.
• Also weighing on the Euro was news that the Greek finance ministry had been blockaded by union workers striking against the planned austerity budget with fears of a similar action in Portugal and Spain.
• The latest UK house price index showed the housing rally has stalled, but the severe weather conditions were thought to play a part in this.
• Economic news from the US was mixed with unemployment claims coming in slightly lower than expected offset by a fall in pending home sales.
• The US Dollar was the strongest currency across the board with the New Zealand Dollar the weakest. The Canadian Dollar was also very strong on a relative basis.

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

The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
After a strong day for the Pound and Euro yesterday, today’s central bank statements could either make or break the nascent recovery.

At 12.00 GMT we have the latest interest rate statement from the Bank of England’s MPC.

Rates are unanimously expected to be kept on hold at 0.5%, but that’s only part of the story.

Firstly, the actions surrounding the asset purchase facility may be of more importance than the interest rate decision as it is this part which is less of a sure thing.

Analysts expect the Bank of England to keep the amount of quantitative the same, but after the Pounds recent collapse, there is an outside chance of this changing.

Traders will listen to every word and nuance of the accompanying statement from governor King for clues as to future policy decisions.

A bullish tone could see the Pound shoot higher, while negative sentiments or at least an interpretation of negativity could see a fresh sell off in the Pound.

The European Central Bank have their own rate decisions and statement at 12.45. However, although they have not been engaging in quantitative easing, the Eurozone is not without its problems; Greece and the other so called ‘peripherals’ are still weighing heavily on the Euro.

With so much at stake, today’s rate statements are the most important that the ECB and MPC have faced in months.

The GBP/USD, GBP/JPY, EUR/USD, EUR/JPY and EUR/GBP will be the currencies to watch.

As if the day wasn’t busy enough, we also have UK Halifax house price index at 09.00, Canadian building permits at 13.30, US unemployment claims at 13.00, Canadian PMI data at 15.00 and US pending home sales at 15.00.

It’s relatively quiet out there so far with the notable exception is the antipodean currencies of the Australian and New Zealand Dollar.

The NZD/USD is down 0.62% with the Australian Dollar not faring much better. Things could change pretty quickly once the economic data starts rolling in.

A busy day!

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