A quiet day on the economic news front was made even quieter with Japanese traders away from their desks due to the public holiday.

• The one meaningful news item today has caused a spark of action though: The bullish comments from Royal Bank of Australia governor Stevens has seen the Australian dollar top the performance charts today.
• The AUD/USD is up 1.00% with the AUD/JPY up by 0.75%.
• With little by the way of scheduled economic announcements, forex markets could be more range-bound than usual – especially the Swiss franc and Japanese yen after last week’s monster moves.

And a quick look at the markets on Friday Afternoon:

In spread betting, money was once again flowing back into the perceived safe haven of the Swiss franc. Thursday’s spike in the EUR/CHF was in part down to traders playing it safe and not risking the Swiss National Bank stepping in a selling francs just like the Japanese did with the yen.

On Friday, such caution has been thrown out of the window however and a fresh bout of franc buying has begun. The euro was under pressure after an Irish Independent article lead with headlines that the Irish government was ‘perilously close’ to calling in the IMF for aid.

The article was criticised by some for exaggerating the analysis made by Barclays, however the damage has been done. On Friday, the EUR/USD was down 0.4% and the EUR /CHF down 1.00%. The USD/CHF was also down 0.61%.

On the economic news front, German PPI came in lower than estimates, core US CPI came out flat and US consumer sentiment slumped to its 2nd lowest level since November 2009.

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

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.

Where to Spread Bet on the S+P 500

You can trade indices spread betting markets such as the S+P 500 with spread betting companies like:

• Financial Spreads
• CMC Markets
• IG Index

How to Spread Bet on the S+P 500

If you decide to spread bet on an index such as the S+P 500 then, on visiting a spread trading company website on Thursday 16th September, you would have found a spread betting price of 1122.8 – 1123.2.

This means you could bet on the S+P 500 to move above 1123.2 or below 1122.8.

When spread betting, investors trade on every unit the market increases or decreases; with the S+P 500 market a unit is 0.1 points of the index’s price movement.

For example, you might choose to bet £2 for every 0.1 points the S+P 500 goes up or down.

 
Betting on the Market to Go Up
 

If you were to go long of the S+P 500 at 1123.2 and the index went up then the spread might change to 1128.3 – 1128.7. In that case, you might choose to close your spread bet for a profit by selling at 1128.3.

Profit/Loss = (closing value of the market – initial value of the market) x stake per 0.1 points
Profit/Loss = (1128.3 – 1123.2) x £2 per 0.1 points stake
Profit/Loss = 5.1 points x £2 per 0.1 points
Profit/Loss = £102 profit

Financial markets also move down, if the market were to drop down to, for example, 1117.6 – 1118.0, you may want to close your trade to prevent further losses. If this were the case, you would sell your spread bet at 1117.6.

With the same £2 per 0.1 points stake:

Profit/Loss = (closing value of the market – initial value of the market) x stake per 0.1 points
Profit/Loss = (1117.6 – 1123.2) x £2 per 0.1 points stake
Profit/Loss = -5.6 points x £2 per 0.1 points
Profit/Loss = -£112 loss

 
Betting on the Market to Go Down
 

A benefit of placing a spread trade is that you can sell the markets.

At the start of the example, the spread betting price was 1122.8 – 1123.2.

If you were to go short of the S+P 500 at 1122.8 and the index went down then the spread could become 1118.1 – 1118.5. Assuming this was the case, you could close your trade for a profit, if so you would buy at 1118.5.

Profit/Loss = (initial value of the market – closing value of the market) x stake per 0.1 points
Profit/Loss = (1122.8 – 1118.5) x £2 per 0.1 points stake
Profit/Loss = 4.3 points x £2 per 0.1 points
Profit/Loss = £86 profit

Conversely, if the market had moved up to 1127.2 – 1127.6, you might decide to close your trade to prevent further losses. If that happened, you would buy at 1127.6.

So, with the same £2 per 0.1 points stake:

Profit/Loss = (initial value of the market – closing value of the market) x stake per 0.1 points
Profit/Loss = (1122.8 – 1127.6) x £2 per 0.1 points stake
Profit/Loss = -4.8 points x £2 per 0.1 points
Profit/Loss = -£96 loss

S+P 500 Rolling Daily spread betting market correct as of 16-Sep-10.

Indices Spread Betting Guide

• Where can I Spread Bet on Indices Markets?
• Where can I find Real-time Spread Betting Prices for Indices Markets?
• Where can I find Live Charts / Candlestick Charts for Indices Markets?
• How do you Spread Bet on Indices Markets to Go Up?
• How do you Spread Bet on Indices Markets to Go Down?

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Where to Spread Bet on the Nikkei 225

You can trade indices spread betting markets such as the Nikkei 225 with spread betting companies like:

• Financial Spreads
• IG Index
• Spreadex

How to Spread Bet on the Nikkei 225 (December) Market

If you decide to spread trade on an index like the Nikkei 225 (December) futures market then, on visiting a spread betting site like Capital Spreads on Thursday 16th September, you would have found a spread trading price of 9493 – 9513.

Therefore, you could spread bet on the Nikkei 225 to go above 9513 or below 9493.

When spread betting, you bet on every unit the market goes up or down. With the Nikkei 225 market a unit is 1 point of the index’s price movement.

As an example, you might choose to trade £1 for every point the Nikkei 225 rises or falls.

 
Buying – Spread Betting on the Market to Increase
 

If you were to buy the Nikkei 225 at 9513 and the index rose then you might see the spread move to 9608 – 9628. If this were the case, you could decide to take your profits by closing your spread bet at 9608.

P&L = (settlement price of the market – initial price of the market) x stake per point
P&L = (9608 – 9513) x £1 per point stake
P&L = 95 points x £1 per point
P&L = £95 profit

The markets can of course fall, if the market had decreased to, for example, 9423 – 9443, you may want to close your spread bet to prevent further losses. If that happened, you would sell at 9423.

With the same £1 per point stake:

P&L = (settlement price of the market – initial price of the market) x stake per point
P&L = (9423 – 9513) x £1 per point stake
P&L = -90 points x £1 per point
P&L = -£90 loss

 
Selling – Spread Betting on the Market to Decrease
 

A useful benefit of spread betting is that investors can go short of the markets.

The initial market was priced at 9493 – 9513.

If you were to sell the Nikkei 225 at 9493 and the index fell then the spread might become 9364 – 9384. Assuming this was the case, you might decide to close your spread trade at 9384.

P&L = (initial price of the market – settlement price of the market) x stake per point
P&L = (9493 – 9384) x £1 per point stake
P&L = 109 points x £1 per point
P&L = £109 profit

On the other hand, if the market had increased to 9577 – 9597, you may decide to close your bet to restrict your losses. Therefore, you would buy at 9597.

You would do this with the same £1 per point stake:

P&L = (initial price of the market – settlement price of the market) x stake per point
P&L = (9493 – 9597) x £1 per point stake
P&L = -104 points x £1 per point
P&L = -£104 loss

Nikkei 225 (December) spread betting prices correct as of 16-Sep-10.

Indices Spread Betting Guide

• Where can I Spread Bet on Indices Markets?
• Where can I find Real-time Spread Betting Prices for Indices Markets?
• Where can I find Live Charts / Candlestick Charts for Indices Markets?
• How do you Spread Bet on Indices Markets to Go Up?
• How do you Spread Bet on Indices Markets to Go Down?

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

• This morning’s main trends so far are euro strength and Aussie dollar dominance. The EUR/USD is up 0.23% and EUR/CHF up 0.35%. The AUD/JPY is up 0.5% with the AUD/ USD up 0.6%.
• Coming up today we have German PPI at 07.00 and European current account data at 09.00.
• Following this we have US CPI and Core CPI inflation data, with a slight drop expected in CPI.
• So far the Bank of Japan’s shock and awe tactic appears to be working with the yen holding ground. Also see USD/JPY spread betting.

Looking at yesterday afternoon:

• Elsewhere in FX spread betting, the Swiss franc was trading significantly lower after the SNB elected to keep interest rates on hold at 0.25%. There were also rumours of authorities directly intervening in currency markets. Even if these are just rumours, they appeared to be having the same effect.
• The euro was the currency de jour, with some speculating that the euro is quickly becoming a safe haven alternative to the US dollar and Japanese yen. Quite how far such sentiment will take the euro remains to be seen, especially with question marks remaining over peripheral markets.
• The pound was under pressure after weaker than expected retail sales.
• Stock markets were varied after a mixed bag of US economic announcements: PPI and unemployment claims came in better than expected, however the Philly Fed manufacturing index was worse than estimates.
• Gold hit a new all time high of $1,277.62

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

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.

Trading Summary:

• Forex spread betting markets are rewinding a little after yesterday’s monster moves on the yen
• The USD/JPY is down 0.5%, the EUR/JPY -0.71%, the GBP/JPY -0.74% and the AUD/ JPY by -1.00%
• There is also a mild swing back towards caution with stock market futures down around 0.5% in early trading and the commodity currencies of the AUD/USD, NZD/USD and USD/CAD down by around 0.2 to 0.5%
• Today’s major announcements include UK retail sales at 09.30. A slight drop to 0.3% is expected
• There is a raft of major US economic data points from 13.30 including PPI, unemployment claims, TIC Long term purchases, Philly Fed Manufacturing Index and a speech by treasury secretary Geithner. The latter could be especially interesting given Japan’s unilateral currency intervention and traders will be looking for any signs of push back from the US authorities
• The interest announcement from the Swiss National Bank at 13.00 could cause some fireworks, with an outside chance of a 0.25% hike. Most analysts expect a no change announcement, but Swiss Bank UBS have muddied the waters with a bold call for a 0.25 to 0.50 hike in rates

Yesterday’s Big Forex Moves:

• The Japanese yen continued to tumble on speculation that the Bank of Japan isn’t finished with its currency interventions
• A senior Japanese official commented: “Intervention isn’t finished after one move”
• If its traders vs Japan, the Bank of Japan are certainly 1-0 up right now on the spread betting traders who were completely blindsided by yesterday’s move. The shock tactic appears to be paying off with traders betting that the BoJ has the willpower and backing to see this intervention through
• USD/JPY was up 3.14%, AUD/JPY was up 3.05%, EUR/JPY was up 3.38% and the GBP/JPY was up 3.66%
• Analysts are divided over the eventual impact though, with many sceptical that the BoJ will be able to hold back the yen, especially after past failures. However, there are some mitigating circumstances which point to the possibility of this time being different
• Attention now turns to the question of who will be next to intervene? The Swiss are the most likely to make a move and yesterday’s price action implies that some traders are selling CHF ahead of such a move
• The Swiss National Bank set their interest rates today (Thursday) and until Tuesday, there were some rumours of a 0.25% hike. After seeing recent currency movements, the SNB may be tempted to hold off

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

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 Bank of Japan (BoJ) have had enough of the yen’s currency and opted for the so called ‘nuclear’ option of intervening directly in currency markets.

The BoJ sold billions of yen on the market causing a huge spike to appear on the online spread betting charts, with the yen around 2% lower against most other currencies.

Such direct currency interventions do not have a tremendous record of success though as shown by the Swiss National Bank’s failed attempts to reign back the CHF against the EUR.

Here’s a trading idea to take advantage of this: A ‘lower’ bet predicting that the USD/JPY will be below ¥84.5 in 7 days time could return 131% if successful.

Editor’s note: if you lose this trade you lose 100% of your stake – naturally you can also trade the Dollar/Yen spread betting market.

Today’s main economic announcements are UK claimant count change at 09.30 with a speech from BOE governor King at 11.30am. A drop in unemployment claims is expected. From 13.30 there is a raft of US economic announcements including the Empire State Manufacturing Index.

And a quick look at yesterday:

• UK inflation and core inflation came in higher than expected to 3.1 and 2.8% respectively. UK inflation is proving sticky despite the Bank of England’s expectation that increases will ease due to lower economic growth and one off factors being taken out.
• The higher inflation is not good news as the WSJ put it: “Some economists fear the Bank of England may be wrong in assuming that economic weakness protects against inflation. It’s possible to have the worst of both worlds.”
• It appears that the markets believe the Bank of England’s line that this inflation rise will be temporary as the pound is still relatively weak on the day. Higher inflation expectations usually leads to higher interest rate expectations, which in turn pushes a currency higher. The EUR/GBP is actually up by 0.2%
• In the gold spread betting markets, the yellow metal is responding to dollar weakness by pushing to a new record high of $1270.97. Time to dig out an old post warning about the danger of buying gold when it reaches record or multi week highs.

  Gold can be fickle at these levels, often selling off just as new investors start to pile in. These sell offs can be short lived though. It’s usually best to wait until the end of the week.

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

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.

In FX spread betting, the US dollar hit 15 year low against yen in early trading but has since rebounded strongly.

The dollar is also down against the Swiss franc, hitting parity for the first time since November 2009.

The British pound is under pressure after the RICS house price balance came in much weaker than expected, hitting its lowest level since August 2009.

Coming up today we have key UK inflation data at 09.30 with a slight drop expected in non-core inflation, with core expected to remain the same. Following this we have US retail sales at 13.30.

Investors are becoming more confident as the rally in equities starts to firm, but this may come to an end if US consumers are not reaching into their pockets.

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

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 big news is that the new banking capital & liquidity standards via Basel III are in.

The rules are complex and it will no doubt take a few days for their implications to sink in, but so far stock market futures and ‘risk on’ forex pairs indicate that traders like what they’ve seen.

The euro is rallying after Greek Prime minister Papandreou reassured investors that the indebted country would be staying the course with its austerity measures.

This morning the standout moves are strength in the euro with the EUR/USD the standout rise with +1.00% gains. The EUR/JPY is not far behind at +0.88%.

Stock market futures are indicating a 1% rise for the FTSE 100 at the open, with S&P 500 futures currently 0.90% higher.

Monday is light on the economic data front with US Federal budget balance at 7PM and a speech from ECB president Trichet the notable highlights.

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

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.

Where to Spread Bet on Euro/Canadian Dollar

You can trade FX spread betting markets such as Euro/Canadian Dollar with spread betting companies like:

• Financial Spreads
• IG Index
• TD Waterhouse

How to Spread Bet on Euro/Canadian Dollar

Should you decide to spread bet on a foreign exchange pair like the Euro/Canadian Dollar then, if you had looked at a spread betting website like Capital Spreads on the Friday 20th September, you would have seen a spread betting price of C$1.3130 – C$1.3140.

Therefore, you could spread bet on the Euro/Canadian Dollar to increase above C$1.3140 or decrease below C$1.3130.

If you are spread betting, you bet on every unit the market increases or decreases. In the case of the Euro/Canadian Dollar market a unit is C$0.0001 of the forex pair’s price movement.

So, you could choose to trade £3 for every C$0.0001 the Euro/Canadian Dollar goes up or down.

 
Spread Betting on the Market to Rise
 

If you were to go long of the Euro/Canadian Dollar at C$1.3140 and the forex pair went up then the spread might change to C$1.3173 – C$1.3183. If this were the case, you could close your bet for a profit, if so you would sell at C$1.3173.

Profits (or Losses) = (settlement value of the market – opening value of the market) x stake per C$0.0001
Profits (or Losses) = (C$1.3173 – C$1.3140) x £3 per C$0.0001 stake
Profits (or Losses) = C$0.0033 x £3 per C$0.0001
Profits (or Losses) = £99 profit

The markets can of course fall, if the market were to drop to, for example, C$1.3110 – C$1.3120, you might decide to close your trade to prevent further losses. If that were to happen, you would sell your trade at C$1.3110.

Therefore, with the same £3 per C$0.0001 stake:

Profits (or Losses) = (settlement value of the market – opening value of the market) x stake per C$0.0001
Profits (or Losses) = (C$1.3110 – C$1.3140) x £3 per C$0.0001 stake
Profits (or Losses) = -C$0.0030 x £3 per C$0.0001
Profits (or Losses) = -£90 loss

 
Spread Betting on the Market to Fall
 

One of the many advantages of spread betting is that you can short the markets.

The original market was C$1.3130 – C$1.3140.

If you were to sell the Euro/Canadian Dollar at C$1.3130 and the forex pair decreased then you might see the spread move to C$1.3089 – C$1.3099. If that happened, you could close your bet for a profit by buying at C$1.3099.

Profits (or Losses) = (opening value of the market – settlement value of the market) x stake per C$0.0001
Profits (or Losses) = (C$1.3130 – C$1.3099) x £3 per C$0.0001 stake
Profits (or Losses) = C$0.0031 x £3 per C$0.0001
Profits (or Losses) = £93 profit

However, if the market increased to, as an example, C$1.3148 – C$1.3158, you might want to close your bet to prevent further losses. If so, you would buy the market at C$1.3158.

You would do this with the same £3 per C$0.0001 stake:

Profits (or Losses) = (opening value of the market – settlement value of the market) x stake per C$0.0001
Profits (or Losses) = (C$1.3130 – C$1.3158) x £3 per C$0.0001 stake
Profits (or Losses) = -C$0.0028 x £3 per C$0.0001
Profits (or Losses) = -£84 loss

Euro/Canadian Dollar Rolling Daily spread betting prices correct as of 10-Sep-10.

FX Spread Betting Guide

• Where can I Spread Bet on FX Markets?
• Where can I find Real-time Spread Betting Prices for FX Markets?
• Where can I find Live Charts / Candlestick Charts for FX Markets?
• How do you Spread Bet on FX Markets to Go Up?
• How do you Spread Bet on FX Markets to Go Down?

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Where to Spread Bet on Australian Dollar/Yen

You can trade FX spread betting markets such as Australian Dollar/Yen with spread betting companies like:

• Financial Spreads
• IG Index
• Spreadex

How to Spread Bet on Australian Dollar/Yen

If you are going to spread bet on a foreign exchange pair like the Australian Dollar/Yen then, on visiting a spread betting company’s website on Friday 20th September, you would have seen a spread trading price of ¥77.76 – ¥77.80.

As a result, you could spread trade on the Australian Dollar/Yen to go higher than ¥77.80 or to go lower than ¥77.76.

When spread betting, investors bet on every unit the market increases or decreases; in the case of the Australian Dollar/Yen market a unit is ¥0.01 of the forex pair’s price movement.

With this example, you could choose to bet £3 for every ¥0.01 the Australian Dollar/Yen increases or decreases.

 
Spread Betting on the Market to Go Up
 

If you bought the Australian Dollar/Yen at ¥77.80 and the forex pair rose then the spread might change to ¥78.19 – ¥78.23. If that happened, you could decide to take your profits by closing your spread trade at ¥78.19.

P&L = (closing price of the market – initial price of the market) x stake per ¥0.01
P&L = (¥78.19 – ¥77.80) x £3 per ¥0.01 stake
P&L = ¥0.39 x £3 per ¥0.01
P&L = £117 profit

Financial markets also move down, if the market had decreased to, as an example, ¥ 77.45 – ¥ 77.49, you might want to close your trade to prevent further losses. Therefore, you would sell back at ¥ 77.45.

You would close your bet with the same £3 per ¥0.01 stake:

P&L = (closing price of the market – initial price of the market) x stake per ¥0.01
P&L = (¥ 77.45 – ¥77.80) x £3 per ¥0.01 stake
P&L = -¥0.35 x £3 per ¥0.01
P&L = -£105 loss

 
Spread Betting on the Market to Go Down
 

One major benefit of using a spread bet is that you can go short of the markets.

When we began this example, the market was ¥77.76 – ¥77.80.

If you were to go short of the Australian Dollar/Yen at ¥77.76 and the forex pair fell then the market might be re-priced at ¥77.29 – ¥77.33. Assuming this was the case, you might decide to close your bet for a profit at ¥77.33.

P&L = (initial price of the market – closing price of the market) x stake per ¥0.01
P&L = (¥77.76 – ¥77.33) x £3 per ¥0.01 stake
P&L = ¥0.43 x £3 per ¥0.01
P&L = £129 profit

However, if the market had increased to ¥78.10 – ¥78.14, you may want to close your bet to prevent further losses. If that were to happen, you would buy your spread bet at ¥78.14.

So, with the same £3 per ¥0.01 stake:

P&L = (initial price of the market – closing price of the market) x stake per ¥0.01
P&L = (¥77.76 – ¥78.14) x £3 per ¥0.01 stake
P&L = -¥0.38 x £3 per ¥0.01
P&L = -£114 loss

Australian Dollar/Yen Rolling Daily prices correct as of 10-Sep-10.

FX Spread Betting Guide

• Where can I Spread Bet on FX Markets?
• Where can I find Real-time Spread Betting Prices for FX Markets?
• Where can I find Live Charts / Candlestick Charts for FX Markets?
• How do you Spread Bet on FX Markets to Go Up?
• How do you Spread Bet on FX Markets to Go Down?

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.