For the latest FX Daily Trading Update see FX Day Trading.
FX Day Trading - 24 August 2011
A second day of currency calm
Hat trick today perhaps?
Could US durable goods get things going?
Cameroonian footballer Samuel Eto'o has signed for a club in Dagestan on the Caspian Sea coast.
His transfer from Inter Milan will cost €21 million, his salary will be €20 million a year and Mr Eto'o will have a troop of bodyguards to protect him from the numerous militias and insurgents who roam the republic. Only after he had signed the contract did the footballer discover that Dagestan was not just down the road from Redbridge.
There are plenty of investors who have still not discovered that Moody's has cut the credit rating of Japan from Aa2 to Aa3, lowering it to the same level as Standard & Poor's, which already had it at the equivalent AA-.
The news weakened the yen briefly early this morning but it has since made more than a full recovery, and the USD/JPY and GBP/JPY spread betting markets are lower than before the announcement.
It is only fractionally stronger though. Like almost every other currency in the top two divisions, the yen starts in London this morning within spitting distance of where it was 24 hours ago.
Sterling, the US dollar and the Australian dollar have not moved at all and most of the others have only shifted by 10 or 20 ticks. With every opportunity to take advantage of some vaguely interesting economic data, FX spread betting investors chose not to bother.
The provisional Euroland purchasing managers' indices came in at or slightly above their forecast levels while the German services PMI fell short of the mark.
At 33.4k in July, UK mortgage approvals by BBA members were predictably similar to the weak numbers seen in recent months. The CBI's Industrial Trends survey was much better than expected; orders were up by 1% in August instead of falling by the expected -13%.
ZEW's survey of German investor confidence was a shocker. All three measures were sharply lower and the main economic sentiment indicator fell from -15.1 to -37.6. Anything below zero counts as pessimism so German investment managers are clearly not looking on the bright side.
There was a degree of relief when the Richmond Fed's manufacturing index dropped from -1 to -10. It was not a positive number but it was considerably better than the -30.7 reported by the Philadelphia district a week earlier.
US new home sales and Canadian retail sales were a disappointment with falls of 0.7% and 0.1% respectively. Last night New Zealand reported an unexpected trade surplus of $129 million for July.
If spread betting investors were unable to make anything of yesterday's ecostats, they will find it no easier with today's meagre selection. From Europe there are IFO's survey of business confidence and Euroland industrial orders. From the States there are the capricious durable goods orders data. It isn't much to work with.
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.
'GBP/JPY Spread Betting Market Drops Despite Japenese Credit Downgrade', Article by Moneycorp, last update: 24-Aug-11
Related articles:
FX Day Trading, 18-Apr-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, 17-Apr-12,
A daily review of the currency markets concentrating on the major Dollar, Yen, Euro and Pound Sterling markets...see: FX Day Trader
£1 per point: Start trading £1 per point/tick & an initial deposit of £30
Multiple markets: Forex , Commodities, Indices & Equities
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.
