FX Day Trading 26 Feb 2010

Spread Betting
           
FX Day Trading 26 Feb 2010

FX Day Trading 26 Feb 2010


For the latest FX Daily Trading Update see FX Day Trading.



A daily look at the FX markets from Moneycorp.com.

FX Day Trading - 26 Feb 2010

A Lousy Day for Everything
  • Greek Default Would Sink Euro
  • UK and US GDP Revisions Today

Luxury goods manufacturer Mont Blanc has fallen foul of the Indian courts for selling a £16k gold fountain pen. It commemorates the 140th anniversary of the birth of Mahatma Ghandi, an ascetic who famously used pencils down to their last centimetre.

As marketing clangers go, Mont Blanc's howler is up there with the Greek coin celebrating 12 years' membership of the euro.

In fact any coin celebrating 12 years' membership of the euro could be added to that list if Carl Heinz Daube's worst dreams come true.

The head of Germany's Finanzagentur - the federal finance agency that handles government borrowing - told a conference in London yesterday that 'if a country goes bankrupt, it will be the end' of the euro.

It was not an unreservedly optimistic assessment, especially with Greece's credit rating at risk of falling from' investment' grade to what is cruelly known as 'junk'.

Sharing the platform with H Daube was his opposite number at the UK Debt Management Office. Robert Stheeman had a more upbeat outlook, at least as far as gilts were concerned.

He said that 'politicians of all colours are taking the situation very seriously indeed. Investors derive a lot of comfort that there is agreement across the spectrum that the deficit needs to be brought under control.' Mr Stheeman also suggested that a hung parliament might be 'less disruptive' than assumed.

Be that as it may, the fear of a hung parliament was certainly stalking the market yesterday after a new opinion poll pointing to Labour winning the most seats.

That possibility weighed on sterling, as did some truly awful figures for business investment in the fourth quarter of last year.

Investment was down by -5.6% quarter-on-quarter and fell by 24.1% over the year as a whole.

Investors' disenchantment with the pound was made clear by the way they focused on those bad numbers while ignoring the CBI's distributive trades survey which rose by 31 points to +23 in February.

They have been equally dismissive of an improvement in UK consumer confidence from -17 to -14 announced overnight although, to be fair, minus-anything does not portend a stampede to the high street tomorrow.

A similar cherry-picking approach saw the market focus on worse than expected weekly US jobless figures and a falling house price index while they ignored a +3.0% increase in durable goods orders that was twice as big as forecast.

All in all it was a bad day for the euro, a bad day for the pound, a bad day for risk-appetite, a bad day for share prices and a bad day for pretty well everything else.

There was not exactly an equality of misery but the pound, the yen and the Canadian dollar start this morning within shouting distance of yesterday's opening levels against each other; it is hard to read that as anything more than coincidental.

An armful of Japanese statistics this morning boiled down to a picture of slower deflation (-1.3% instead of -2.0%), faster industrial production (up by 18.2% in the year to January) and higher consumer demand (retail trade grew by a seasonally adjusted 2.9% in January).

As yet there has been no reaction to a -1.0% monthly fall in Nationwide's UK house price index. Perhaps because it was up by 9.2% in the year to February and because there will surely have been a skew in turnover as a result of the reimposition of stamp duty.

Investors will also be keeping their powder dry in readiness for the revised fourth quarter GDP figures.

After an earlier provisional +0.1% the consensus today is for an upward revision to +0.2%.

Euroland's main contribution will be CPI inflation, which was probably +1.0% in the year to January, and Switzerland's KOF leading indicator completes the batting for Europe.

A busy afternoon for US statistics will bring a revision to Q4 GDP and its related consumption measures, the Chicago purchasing managers' index, the finalised University of Michigan consumer confidence index and existing home sales.

It is likely that sterling's fortunes will hang on that GDP number.

After several disappointments investors have learned to be wary of over-optimism and there could be relief at any figure above zero.

Any significant upward revision should put a spring in sterling's step but woe betide it if a minus is involved.



Advert: FinancialSpreads.com - Live Prices, Charts, Indices, Equities,
Commodities, Forex and more >> Apply for an Account


Currency Trading and Spread Betting carry a high level of risk to your capital and you can lose more than your initial investment, they 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.

The above content does not constitute investment advice, it is provided purely for information purposes and is delivered as a personal view of the writer. Neither the contributing company (or writer) nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the content.



Note - 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.

'FX Day Trading 26 Feb 2010', Article by Moneycorp, last update: 26-Feb-10
Related articles:

FX Day Trading, 3-Feb-12,
Daily FX Trading updates covering the influences on the key FX markets. Daily updates include key FX market movements and features the Dollar, Pound, Euro and Yen as well as...see: FX Day Trading

FX Day Trader, 2-Feb-12,
A daily review of the currency markets concentrating on the major Dollar, Yen, Euro and Pound Sterling markets...see: FX Day Trader

Forex Spread Betting: Optimism on EU Summit Boosts Commodity Currencies, 10-Jan-12,
Forex Spread Betting: A side effect of the optimism was a boost to the commodity dollars, all three of which had a good day. Elsewhere in forex spread betting, there was a moment of high excitement for the Swiss...see: Forex Spread Betting: Optimism on EU Summit Boosts Commodity Currencies

FX Spread Trading: US Dollar Rallies on Strong Employment Data, 9-Jan-12,
Forex Spread Betting: Online spread betting investors reacted positively to the US employment news and, for once, that did not mean selling the dollar in favour of riskier FX spread trading currencies. They bought...see: FX Spread Trading: US Dollar Rallies on Strong Employment Data

EUR/JPY Spread Betting Market Falls as UniCredit Seeks €7.5bn of New Capital, 6-Jan-12,
Forex Spread Betting: Not surprisingly the euro had to endure another day of retreat. EUR/USD spread betting market conceded a cent and a half, EUR/JPY dropped three quarters of a yen whereas GBP/ EUR rose half a ...see: EUR/JPY Spread Betting Market Falls as UniCredit Seeks €7.5bn of New Capital

European PMIs Boost EUR/CAD FX Spread Betting Markets, 4-Jan-12,
Forex Spread Betting: Beyond the PMIs and employment numbers, investors were not given much to play with. Consequently, exchange rate movements were moderate. EUR/USD and EUR/CAD each gained ...see: European PMIs Boost EUR/CAD FX Spread Betting Markets

Spread Trading Investors Buy US Dollar in Search for Safe Haven, 3-Jan-12,
Forex Spread Betting: Spread trading investors are not yet unduly concerned about the risks faced by the US dollar. As far as most are concerned, the dollar and the yen represent a safe alternative to an unstable...see: Spread Trading Investors Buy US Dollar in Search for Safe Haven

Spread Betting Markets Remain Cautious Despite Failed Italian Bond Auction, 30-Dec-11,
Forex Spread Betting: Movement was generally limited to half a cent and there was no apparent effort to repeat the drama of Wednesday, when the GBP/USD and the EUR/USD took an unexpected ...see: Spread Betting Markets Remain Cautious Despite Failed Italian Bond Auction

Forex Spread Betting: ECB LTRO Causes Sterling to Fall Two Cents In Two Hours, 29-Dec-11,
Forex Spread Betting: In FX spread trading markets, Sterling went down at the same time as the euro fell, falling by two cents against the US dollar in less than two hours. It lost about quarter of a cent to the euro...see: Forex Spread Betting: ECB LTRO Causes Sterling to Fall Two Cents In Two Hours

Christmas Holidays Help Euro to Hold Up Against the US Dollar, 28-Dec-11,
Forex Spread Betting: In FX spread trading, the euro's position against the US dollar, the pound and the franc is almost unchanged from Friday morning. The story is similar for the Australian, Canadian and...see: Christmas Holidays Help Euro to Hold Up Against the US Dollar



FX Daily Trading Index

FX Day Trading Index
Index of the Moneycorp Daily Trading updates...see Index.







Trading News
Looking to improve your trading results? Get free trading tips and trading analysis as well as the latest trading offers » Trading News.



FinancialSpreads.com - The Financial Spread Betting Website
FinancialSpreads.com - Forex , Commodities, Indices, Equities
Trade the tightest FTSE spreads available² & find a range of benefits at: FinancialSpreads.com

FinancialSpreads.com - tight spreads Constantly tight spreads: eg Brent Crude 5 ticks, Rolling S&P 4 ticks
FinancialSpreads.com - Tax Free Profits (3) Tax Free Profits³
FinancialSpreads.com - £1 per point £1 per point: Start trading £1 per point/tick & an initial deposit of £30
FinancialSpreads.com - Forex, Commodities, Indices, Equities Multiple markets: Forex , Commodities, Indices & Equities
FinancialSpreads.com - The Financial Spread Betting Website


Risk Warning - Spread betting carries a high level of risk to your capital & you may lose more than your initial investment. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seek financial advice where necessary & make sure spread betting meets your investment objectives.


(1) The FTSE Rolling Daily Spread is 1 tick during market hours & 4 ticks out of hours. 1 Tick is defined as a full FTSE point. See our Product Information for more details. (2) The above information is correct at time of writing. (3) Tax Law can change.

FinancialSpreads.com is a trading name of London Capital Group Ltd which is authorised & regulated by the Financial Services Authority (FSA). Registered address: is 4th Floor, 12 Appold Street, London EC2A 2AW. All information correct at time of publication.

   
Risk Warning: 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.

Disclaimer: Online-Spread-Betting.com does not endorse the information and analysis available on this site. It is provided purely for information purposes and is delivered as a personal view of the writer. Under no circumstances is the information hereon to be used or considered as, an offer to sell, or a solicitation of any offer to buy. The website content does not constitute investment advice and neither the individual contributor nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the content.

* Tax Free Trading: Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.

Spread Betting Firms
Capital Spreads
City Index
CMC Markets
ETXCapital
Financial Spreads
GFT
IG Index
Spreadex
Spread Betting Offers
Spread Betting News
Daily Spread Bet Tips
Daily Market Analysis
Daily Shares News
Daily FX Trading
Daily Blog
Daily Market Data
Daily Spread Betting
Trading News
Spread Trading Strategy
Spread Betting
Financial Spread Betting
Financial Fixed Odds
Financial Glossary
Trading Directory
© Copyright Online-Spread-Betting.com 2007-2012. All rights reserved.