For the latest FX Daily Trading Update see FX Day Trading.
FX Day Trading - 13 October 2011
Another vote for bank recapitalisation
Another day of success for the euro
Sterling survives dubious employment data
Roy Wyre, a Nottingham pensioner, has been fined £75 for littering after he brushed his pet dog in a park.
Mr Wyre felt he had received ruff treatment when he was collared. Police said the fine was entirely fur; he had been trying to flea the scene.
Also in the geddaway category was President Barroso's speech yesterday to the European Parliament, in which he set out a "roadmap [that] charts Europe's way out of the economic crisis".
In a rehash of the most popular platitudes on the subject, there were three elements to his proposal: the recapitalisation of banks; early introduction of a permanent financial stability mechanism; and better observation of fiscal deficit rules by member nations.
For good measure he proposed a ban on bonus and dividend payments until capital ratios are at an appropriate level. More usefully, he also called for another round of stress tests on banks' balance sheets, this time acknowledging that sovereign debt is not risk-free.
The familiar words – especially those relating to recapitalisation – pressed all the right buttons for investors, keeping alive their fond hope that EU leaders are at last serious in their quest for a solution.
President Barroso's roadmap showed the way to another day of gains for the euro. The single currency also received assistance from a second vote in Slovakia's parliament. This time, the prime minister bought opposition support for a "yes" vote on the EFSF extension with a promise to hold an early general election.
While the euro was coasting to another easy win sterling was having a tougher time in FX spread betting. Figures released on Wednesday morning showed UK employment at its highest level in 15 years.
Had it not been for fewer-than-expected new claims for jobseeker's allowance*, the pound would have had an even tougher time.
As it was, financial spread betting investors took half an hour to work out whether or not the numbers were bad, eventually coming to the conclusion that they were not bad enough to warrant punishment for the pound. It starts this morning unchanged on the day against the euro, a cent and a half better against the US dollar and two yen higher.
The dollar's decline was a symptom of euro strength; the yen's retreat was probably no more than the result of investors' boredom with dollar/yen's week-long narrow range.
The opening ecostat shots this morning came from Australia, where unemployment fell to 5.2% and 20.4k new jobs appeared in September. Although positive for the Aussie dollar, the news did not move it far.
In Germany consumer prices rose by an annual 2.6%. Yet to come are Swiss producer and import prices, US weekly jobless claims and trade figures from Britain, Canada and the United States. None of those is guaranteed to distract investors from the recapitalisation of European banks.
* The number of people unemployed is always much higher than the number receiving benefits. Being out of work does not, of itself, qualify an unemployed person for state aid if their partner has a job or they have money in the bank. The number of unemployed and the number of dole claimants do not necessarily move in the same direction (although they tend to do so).
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.
'Sterling Lower in FX Spread Betting as UK Unemployment Rises', Article by Moneycorp, last update: 13-Oct-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.
