This morning markets are being buffeted by cross winds.

One big positive has been the better than expected Chinese Manufacturing PMI.

The negatives include worse than expected Australian house price figures and the not entirely surprising news that the Greek bailout negotiations are dragging on.

In forex spread betting, the New Zealand dollar has been hardest hit with the NZD/USD down 0.20%, though the pair is well off the morning lows.

The pound and euro are both down around 0.15% against the US dollar and around 0.2% against the yen.

Trading Today

Coming up today we have UK Manufacturing PMI due at 09.30 with a small drop expected.

At 13.15 we have the month’s first major announcement with US ADP Payrolls expected to show a decrease on last month.

ISM manufacturing PMI follows at 15.00 with an increased expected.

EUR/USD Trading Idea

The medium and long term prognosis for the euro is still murky, but on a pure technical basis, the EUR/USD could be ready for a bounce here after two days of pressure.

Through 2011, the EUR/USD a pair to trade pullbacks and today could present such an opportunity.

A HIGHER trade predicting that the EUR/USD closes above 1.3125 in 1 days time could return 140%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

The euro lagged far behind its peers yesterday with the distance increasing through the afternoon session.

The main catalyst had been the lack of progress from Greece and a stubbornly high European unemployment rate.

The EUR/USD was down 0.61%, but the EUR/GBP showed the relative weakness best, down 0.86%.

US data was little better, with the main US house price index, Chicago PMI and CB Consumer confidence all falling more than expected.

This was actually good news for the US dollar which moved off the day’s lows. The USD/CAD rose above parity once again while in gold spread betting, the precious metal lost $15 from the day’s highs.

The NZD/USD held up well though, up 0.80% on the day.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

This morning traders are taking heart from the relatively peaceful European summit with legally binding agreements over national budgets.

Benefit of the doubt is also being given to Greece as its PM provided strong hints that a debt deal is imminent.

This no doubt provides much frustration to the army of hedge fund managers who have been betting on the euro’s demise. The EUR/USD is now well above the January lows and up 0.32% today.

The biggest gainers this morning have been the commodity currencies, with the NZD/USD leading the pack at +0.90% and the AUD/USD not far behind at +0.60%. The Canadian dollar is lagging slightly, but it first has to overcome the tricky parity (1.0000) level.

The yen continues to out perform, putting further pressure on the US dollar.

This is helping gold spread betting markets push to new 2012 highs, with the precious metal up 0.82% on the day.

Trading Today

Coming up today we have a raft of Economic data points, starting with UK net lending to individuals at 09.30.

The European unemployment rate follows at 10.00.

Canadian GDP arrives at 13.30 with a slight increase of 0.2% on the cards.

US S&P Case-Schiller house prices are released at 14.00 with Chicago PMI due at 14.45.

CB consumer confidence numbers follow at 15.00.

Gold Trading Idea

Gold has enjoyed a strong 2012 thus far, lifting strongly off the late 2011 lows to rally nearly $200 in around 30 days. Although nowhere near the 2011 highs, gold is approaching the point where it has moved to far too quickly. If its not there right now it may not be too far off.

A way to trade this might be a LOWER trade predicting that gold closes below $1725 in 7 days time for a potential return of 159%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

Throughout yesterday, the euro was under increasing pressure as markets lost patience with talk of a Greek deal being ‘just around the corner’.

The debate revolves around how much sovereignty Greece is willing to cede and how much trust ‘core’ nations such as Germany have in Greece to handle any bailouts prudently.

With Greece being seen as a potential bottomless pit, Germany does not want to see money go down the drain, while at the same time the Greek population and politicians are not ready to cede control of their finances.

As Thomson Reuter’s Michael Cartine aptly put it: “We get into a political battle over how committed Germany/core states are to the euro and how committed peripheral/weaker states are to staying in the euro.”

Arguably we are now getting to the crux of the structural weakness in the euro itself.

Greece is an individual nation state within Europe with control over its own finances, yet a successful resolution of this crisis will surely see Greece and other nations cede more sovereign control to a central European government.

Either that or Greece decides that it values its sovereignty over membership of the Eurozone. Increasingly it seems that the middle road course of muddling through or passing debt around just isn’t working.

The EUR/USD was down 0.70% on the day with the EUR/GBP showing the euro’s relative weakness, down 0.41%.

The yen was in demand again with the USD/JPY dropping to its lowest levels since October and the EUR/JPY down over 1%.

The Canadian dollar enjoyed some relative strength in the afternoon session though after ratings agencies gave its banks the nod over Australian.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

This morning, the Australian dollar is being hit hard after ratings agency Fitch placed four of its banks on credit watch negative. The AUD/USD is down 0.91% with the AUD/JPY off by a similar margin. The NZD/USD is not far behind at -0.77%.

Away from the Antipodean currencies, the euro is the biggest faller as Greek debt negotiation stumble forward without resolution.

The rhetoric was ratcheted up over the weekend over suggestions that Greek be forced to let the EU control its finances, an idea firmly rejected by Greece so far.

It’s not the backdrop politicians were hoping for as we head into the EU economic summit today, to put it mildly.

The EUR/USD is down 0.42% with the EUR/GBP forex spread betting pair down by 0.10%.

The US dollar is generally enjoying a positive day with gold suffering as a consequence. The precious metal is down by around 0.67% on the day.

Trading Today

It’s a relatively quiet day for the economic calendar with US Core PCE Price index and personal spending at 13.30 the main item of note.

This will no doubt be superseded by any headlines coming from the EU economic summit though.

EUR/GBP Trading Idea

The EUR/GBP has been following a familiar pattern in 2012 of up days generally followed by down days. So far the balance has been such that the down days have been on average smaller than the up days.

However, with the pair trading just below resistance at 0.8400, today could be an opportunity for a LOWER trade, especially if there are some headlines from the EU summit that fail to impress.

A way to trade this might be a LOWER trade predicting that the EUR/GBP closes below 0.8350 for a potential return of 209% in 1 days time (Tuesday Jan 31st).

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Friday Afternoon

On Friday afternoon, the Japanese yen extended its two day surge, fuelled by worse than expected US economic data.

The USD/JPY was down 1.00%, its biggest single day drop for some time, with the AUD/JPY not fair behind at -0.84%.

The dollar was under pressure across the board with the NZD/USD extending its recent bull run and in gold spread betting, the precious metal rallied 0.87%.

The euro was having a fine day of it as well after a successful Italian bond auction.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

This morning, the yen is continuing its snap rebound after a sharp slump at the beginning of the week.

The USD/JPY is heading back towards the 77.00 region after pushing above 78.00 just two days ago.

Other yen pairs are following suit with the EUR/JPY the weakest of the bunch, down 0.56% this morning. The AUD/JPY is not far behind, down 0.50%.

This is adding further pressure on the dollar index which continues its ten day slump.

The falls this morning are small, with mixed trends so far this morning. The EUR/USD is down slightly while the NZD/USD continues to advance, up 0.18%.

With debt negotiations ongoing and the rhetoric stepping up at the World Economic Forum, there could still be room for some volatility on the euro today.

Trading Today

Coming up today we have European M3 Money Supply at 09.00 with a slight increase expected.

ECB President Draghi speaks at 13.15.

US Advance GDP figures are released at 13.30 with relatively solid increase of 3% expected by analysts.

USD/CAD Trading Idea

The USD/CAD hit parity (1.0000) for the first time since the end of October.

The pair has a habit of rebounding off key levels at the first time of asking so there could be room for upside here, especially with the dollar having been under so much pressure.

A way to trade this might be a HIGHER trade predicting that the USD/CAD closes higher than 1.0050 in 3 days time could return 181% if successful.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

Yesterday’s bullish bias on index spread betting was cut back a notch as we went into the European close, but not by much with the Dow Jones up by 0.11% and the FTSE 100 with a +1% close.

The dollar clawed back some ground against most pairs, but still remained under pressure.

The NZD/USD fell back from the day’s highs, but was up 0.50% on the day, with the Canadian dollar strengthening as the day progressed, with the USD/CAD down 0.44%.

Gold was similarly off the highs, but still up 0.70% on yesterday’s session.

The euro lagged other currencies, but still put in a decent showing, with the EUR/USD up 0.25% on the day.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

It’s a mixed bag out there this morning with the main theme being the continued weakness in the Japanese yen.

This morning’s Bank of Japan monthly report saw the USD/JPY advancing another 0.30% this morning.

The Australian dollar is the morning’s strongest currency after traders took heart from the morning’s inflation data.

The AUD/USD is up 0.33% with the AUD/JPY up another 0.69%, capping an incredibly strong run since the 17th.

Stock market futures have a positive bias, especially the Nasdaq 100 futures which are up nearly 1% in early trading, hitting their highest levels since 2001.

Last night tech giant Apple’s earnings came in higher than analysts estimates, pushing the share price to record levels on the back of iphone 4s sales. It cements what has been a solid January for the Nasdaq 100.

Trading Today

We’ve an extremely bust day today starting with German Ifo business climate at 09.00 which is expected to improve slightly.

At 09.30 we have the release of the minutes from the last MPC meeting with preliminary GDP released at the same time. A drop of -0.1% is expected.

UK CBI industrial order expectations follow at 11.00.

The ECB could causes some excitement with president Draghi speaking at 13.15.

At 15.00 we have US pending new home sales.

Today’s main item of note is the FOMC statement released at 17.30. No change is expected but the press conference at 19.15 could cause some volatility in spread betting markets.

All day we have the World Economic Forum in Davos attended by central bankers and heads of state. There is potential for volatility if a few choice words are dropped or picked up by reporters.

USD/JPY Trading Idea

This morning the USD/JPY is pushing up to the 80.00 level for the first time in 2012. The pair has often recently reversed following a big spike higher, especially in the vicinity of the 80.00 level.

A way to trade this might be a LOWER trade predicting that the USD/JPY closes below 77.75 in 3 days time for a potential return of 106%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

It was a rocky day of trading yesterday with better then expected European economic data (German PMI in particular) helping to buffer dour news from Japan and the IMF. The euro steadied after earlier falls and was up slightly against the dollar.

The IMF hit the newswire headlines with a stark warning about the world economy, calling for world (and in particular European) governments to make decisive policy action now before it is too late.

The yen suffered deeply with many pointing to Wall Street Journal’s gloomy prognosis on Japan’s economy which highlights a likely trade deficit for the first time since 1980.

This was probably good news for the Bank of Japan as it takes the pressure off the yen again.

As if a weight had been lifted, the USD/JPY shot up nearly 1% today as traders switched out of the yen.

The biggest was the GBP/JPY which was up 1.16%, as traders reward the UK’s lower than expected borrowing numbers.

The EUR/JPY wasn’t far behind though, up 0.98%, compounding a remarkable run over the last six sessions.

The EUR/GBP showed the pound’s relative strength though the pair was well off the lows of the day.

Stock markets were softer, with the Dow off by around 0.4%, as was gold.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

With the EUR/USD spread betting market closing last night above 1.3000 for the first time since the first proper trading day of 2012, today will represent a real test for the euro.

We have a heavy economic calendar, a European finance minister meeting and Spain selling bonds to contend with. If the EUR/USD can get through the day and still hold the 1.3000 at the close, it could be telling.

This morning there isn’t too much movement to speak of, but the euro is slipping back from the morning highs and the US dollar is gaining some traction.

Shares spread trading markets certainly have a ‘risk off’ feel to them with the S&P 500 futures down 0.51% and the FTSE 100 off by a similar margin so far this morning.

On currencies, this is impacting the AUD/USD which is down 0.38% so far.

Trading Today

We’ve an extremely busy day today with a series of European services and manufacturing data points released.

Already French flash manufacturing has come in below estimates, with German data coming in better than expected. European PMI data is released at 09.00.

Throughout the day we have the economic meeting of European finance ministers with the Spanish bond auction also taking place.

UK public sector net debt figures are released at 09.30 with 12.4bn the figure expected.
Canadian retail sales are released at 13.30.

Late in the evening at 20.00, BOE governor King is speaking.

Also keep a wary eye on the US company earnings which could hit the US and markets in general.

Before the open of US stock markets we have earnings from giants such as McDonald’s with Apple releasing their figures after the bell.

EUR/GBP Trading Idea

The EUR/GBP has seen some big moves of late, but quite often these big moves are reversed within a day or two, especially to the downside.

With Monday’s rally erasing most of Friday’s losses, now could be a time for a LOWER trade on the pair.

A way to trade this might be a LOWER trade predicting that the EUR/GBP closes below 0.8350 in 1 day’s time for a potential return of 140%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

Yesterday afternoon there was more apparent bad news for Greece with the Eurozone finance ministers making it clear that the Hellenic nation can expect no further bailout funds even if the economy deteriorates further.

Either this news had already been priced in or the euro has developed Teflon coating as the EUR/USD surged 0.63% today with similar moves against other pairs.

The EUR/GBP showed particular strength, rallying 0.63% and testing last week’s highs.

The euro outpaced other dollar pairs including the NZD/USD which slipped some way from the day’s highs to trade at +0.36%.

It was not a uniformly bullish day though with US stock markets slipping back. The Dow Jones was off by 0.27%.

Gold enjoyed the dollar’s weakness, rallying 0.75% on the day.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

This morning, risk appetite is on the wane with the US dollar gaining the upper hand so far this morning. Last night saw a strong rally into the US close with the S&P 500 closing nearly half a percent.

On currencies, the euro enjoyed a very strong day with the EUR/USD and EUR/JPY closing up over 1%. Both are slipping back in early trading today but these falls are only mild thus far.

The dollar’s overall strength is also pushing the high flying NZD/USD back for the second day in a row.

The Canadian dollar looks to be the weakest currency so far today with the USD/CAD up 0.25%, bouncing off support at 1.0100.

Trading Today

Already this morning, German PPI has come in below estimates, so traders will be hoping for better news with UK retail sales at 09.30.

Canadian inflation comes under focus at 12.00 with Core CPI at 12.00. Inflation is expected to turn negative according to analyst’s estimates.

USD/CAD Trading Idea

The 1.0100 level has been tricky for the USD/CAD in recent months and so its little surprise to see the pair bouncing off this level this morning.

Looking back through the price history, the pair has rebounded off this level many times and in the last five occasions the USD/CAD has risen to touch 1.0200 within the next trading day.

There is therefore good potential for a USD/CAD rally here.

A way to trade this might be a ONE TOUCH trade predicting that the USD/CAD will touch 1.0200 at some point before the close on Monday for a potential return of 148%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

It was a good day for spread betting markets yesterday with a healthy risk appetite across most areas.

The euro in particular enjoyed a strong day after the ECB effectively guaranteed low rates with its three year LTRO program.

Markets liked this despite lingering questions surrounding the Greek debt talks.

A default is expected by most market traders, but the devil is still in the detail with many seemingly small but significant points still to be cleared up such as whether Credit Default Swap protection will be triggered by such a default.

A Greek debt default should theoretically be priced into the market already, but as ThomsonReuter’s Michael Cartine pointed out – the same was supposed to be true of a Lehman brothers default.

Who knows what dominoes are waiting to fall.

Still, it was a good day for the euro with the EUR/USD up 0.50% and the EUR/GBP up 0.35%.

In FX spread trading, the biggest gains came against the yen with the USD/JPY experiencing its biggest day of 2012 so far. The USD/JPY was up 0.57% with the EUR/JPY up 1.07%, the day’s biggest gainer.

It was a mixed bag for the US dollar with the losses against the euro weighing up against gains versus the yen, Aussie and gold, with the precious metal down 0.41% on the day.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

This morning the Australian dollar is under isolated pressure after its key employment change indicator unexpectedly dropped by 29,300.

Analysts had expected a gain of 10,000. Despite a slightly better than expected unemployment rate at 5.2%, the data has put pressure under the Aussie with the AUD/USD down 0.43% and the AUD/JPY down 0.51%, erasing nearly all of yesterday’s gains.

The NZD/USD is down 0.31% in sympathy with traders no doubt welcoming the chance to book some profits. The pair is still above the 0.8000 level though.

Away from this area, spread betting markets are fairly quiet with the British pound so far unaffected by below expectation UK Nationwide Consumer Confidence.

Last night US stock markets put in their first decent session of the new year, but there is no movement so far this morning.

Trading Today

Coming up today we have European current account data and the ECB monthly bulletin at 09.00.

US building permits, CPI and unemployment claims all follow at 13.30 with the Philly Fed Manufacturing Index to follow at 15.00.

EUR/USD Trading Idea

The EUR/USD has put in a strong showing over the last two days, but now could be a good time to trade the pullback.

Through the latter part of 2011, the EUR/USD showed a strong pullback bias, especially after large moves the previous day.

A way to trade this might be a LOWER trade predicting that the EUR/USD is lower than 1.2800 in 1 days time could return 147% if successful.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

Yesterday afternoon markets were volatile following the announcement that the IMF may be preparing a massive 500bn euro bailout fund for the Eurozone.

Analysts rightly advised caution with many hard negotiations to be had before such a large sum is raised, if it could be raised at all.

Still, it seemed a statement of intent at least and was enough to push the euro above yesterday’s highs with the EUR/USD up 0.86% on the day.

The euro lead the gainers with the NZD/USD keeping pace, up 0.84% and pushing well past the 0.8000 level.

Index spread betting markets followed suit with S&P 500 futures testing yesterday’s highs, up 0.83%.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

Throughout the debt crisis, it has often been said that emerging markets would be the key to helping developed nations emerge from the gloom.

Today is a case in point with strong Chinese growth figures lifting markets this morning.

Chinese GDP came in at +8.9%, ahead of estimates with industrial production also coming in ahead of expectations.

Stock market futures have received an early boost with S&P 500 futures up 0.78%.

The biggest winners so far this morning are the commodity currencies, especially the Australian dollar who’s raw material exports are heavily reliant on Chinese growth.

The AUD/USD is up 1.05%, the highest level since November, with the NZD/USD touching 0.8000, above 0.80%.

The USD/CAD is following suit, extending the two day rally to approach the difficult support level at 1.0100.

The euro is lagging the Aussie, but is still showing solid gains so far with the EUR/USD up 0.70% and the EUR/GBP up 0.44% as the pound shows relative weakness compared to other pairs.

Gold is the biggest mover this morning though with the precious metal up over 1%.

Trading Today

After a dearth of data yesterday and indeed for much of last week, today we have a packed itinerary.

We start with UK inflation with CPI and RPI due at 09.30. Analysts expect inflation to finally drop to 4.2% and 4.7% respectively.

Bank of England governor King is speaking at 09.45.

German ZEW economic sentiment follows at 10.00 with European ZEW released at the same time. We also have Europe wide inflation data at 10.00.

At 14.00 we have the latest rate statement from the bank of Canada with no change expected.

AUD/USD Trading Idea

The AUD/USD received a much needed boost today with the stronger than expected Chinese data. The pair has certainly lost its shine that saw it rocket higher through 2009 to 2010, but it has been in an uptrend of sorts since Mid December.

The 1.0400 level has proven tricky in the past, but if it holds, there is clear sky until 1.0700.

A way to trade this might be a higher trade predicting that the AUD/USD closes above 1.045 in 7 days time for a potential return of 121%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

It was a day to forget on financial spread betting markets yesterday without the guiding hand of US markets or any notable headlines coming from the Eurozone.

The one exception was the USD/CAD which was down 0.54% as confidence in the Canadian economy improved.

US Stock markets were closed, but S&P 500 futures managed to put in a reasonable day rallying 0.20%.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.
 

After a weekend of analysis following the downgrade of major European counties including France and Austria, the financial spread betting markets are predictably trading lower so far this morning.

Most currency pairs and stock market futures imply a ‘risk off’ mentality for the day. However, so far, the falls are mild. The EUR/USD is down just 0.10% as the dollar index pulls back from recent highs.

Other dollar pairs are seeing similar moves with the AUD/USD and NZD/USD bouncing off the lows to push back towards Friday’s close.

In forex spread betting, the main currency to highlight this morning is the Canadian dollar with USD/CAD down 0.38%, the top mover so far this morning.

After flirting with the ¥77.00 level in early trading, the USD/JPY is firmly back within its median trading range and down 0.17% on the day so far.

The yen’s strength pushing other pairs lower with the EUR/JPY hitting new lows ten year lows, down 0.24%.

Gold is pushing higher, testing the $1,650 level once again.

Trading Today

We have a light economic calendar today with lighter trading possible owing to the US bank holiday today.

The day’s main highlight is ECB president Draghi speaking at 18.00.

EUR/USD Trading Idea

The euro crisis has tended to follow a pattern of big headlines & falls followed by a brief period of respite when European leaders put out reassuringly headlines.

Markets then figure out that the reassurances are lacking substance and the whole cycle starts again.

After Friday’s big falls on the EUR/USD, there could be some short term respite as Europe’s leaders do their best to sooth markets. In addition, the EUR/USD has been a very good pull back currency over the last six months with big moves in either direction often followed by a retracement back in the opposite direction.

A way to play this might be a HIGHER trade predicting that the EUR/USD is higher than 1.2750 in 7 days time for a potential return of 170%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

Also see spread betting on the EUR/USD.

The Markets on Friday Afternoon

After a week of tepid trading, volatility returned to financial markets in Friday afternoon as the eurozone crisis reared its ugly head once more.

France and Austria’s credit ratings were on the line as the Greek debt talks collapsed. Adding to the general negative tone, US trade balance numbers came in worse than expected.

The euro was being singled out on a generally negative day with the EUR/JPY hitting its lowest levels since 2000 and the EUR/USD dropping 1.20% on the day. The EUR/GBP was also trading lower despite UK PPI Input dropping 0.6%.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

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.