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FX Day Trading - 30 September 2011
Déjà vu…….again!
As England prepare to take on the auld enemy in the Rugby World Cup tomorrow the FX spread betting markets do the same, their foe, what else but the European sovereign debt crisis!
Yesterday the sun was shining and hopes were high as Germany unanimously voted to expand the Euro-area rescue fund’s firepower. These changes will be in place by mid-October and next week European finance ministers will be meeting to discuss the acceleration of the implementation of a permanent rescue fund for the area.
There had never been much doubt about the outcome of the vote but it still helped the euro recover some of the ground it has given up over recent weeks.
There was also comment from German Finance Minister Wolfgang Schaeuble that the ESFS still has over 90% of its capacity available (€396bn) after the bailouts of Ireland, Portugal and of course Greece, which gave further comfort.
UK consumer sentiment showed an upturn for the first time in 4 months and you could be forgiven for thinking there might be a light at the end of the tunnel.
But we all know better than that don’t we!
Overnight, Asian stock spread betting markets declined and this morning worries about Europe have returned. The euro has given back all of the ground it gained yesterday and some commentators are now saying they want a rescue fund starting with a T rather than a B.
Matters were not helped by Standard & Poor downgrading New Zealand overnight and the release this morning of the worst German Retail Sales in August for over four years.
Today’s data releases are mostly secondary tier, but keep an eye out for US inflation this afternoon which is due to show a modest pick up to 1.7%. Looking ahead, expect this euro saga to continue for some time to come.
There’s no easy solution to their problems and the sooner they accept that and its consequences the better for the euro and the world, except for the US that is as that would bring the spotlight back squarely onto them!
Have a great weekend and enjoy the last of the summer sun!
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'Spread Betting Markets Fall as Worry Over Eurozone Woes Returns', Article by Moneycorp, last update: 30-Sep-11
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