For the latest FX Daily Trading Update see FX Day Trading.
FX Day Trading - 14 December 2011
Merkel vetoes boost for EFSF
And puts another dent in euro confidence
UK inflation lower again at 4.8%
James Murdoch claims not to have known about the phone hacking, despite having replied to at least one email on the subject.
Apparently he had not read the message before sending his reply. "But Mr Murdoch, surely you must have read it?" "No, I didn't." "Why not?" "You can't make me read it!"
It is easy enough to imagine EU leaders facing a similar line of questioning in the aftermath of a mass sovereign default and the break-up of the euro.
"But Frau Merkel, surely you must have seen shed-loads of documents setting out what would happen if you prevented the ECB and the stability fund from supporting government bonds?" "Ja." "Yet they did not influence your decision?" "Nein. Es ist meinen Weg oder den hohen Weg."
The German chancellor dropped another brick on the euro's foot yesterday when she told her party members that she would prevent any increase to the European Financial Stability Facility's €500bn lending limit.
Whilst it is almost immaterial whether the ceiling is half a trillion or one trillion euros (since neither would be enough to rescue Italy) the comment was the latest in a series of psychological blows to confidence in Euroland and its sovereign borrowers.
It also spoiled what might have been a relatively relaxed day for the euro. ZEW's survey of economic sentiment among institutional investors in Europe found them less pessimistic than expected.
The financial spread betting market had been geared up for readings at least as negative as a month ago. Instead, economic sentiment in Germany improved by more than a point to -53.8 and in Euroland as a whole by a full five points to -54.1.
They were still not good numbers but at least they were a step in the right direction.
Nevertheless, it was the euro that bore the brunt of an unconfident forex spread betting market on Tuesday. It starts this morning at the bottom of a league table topped by the US dollar and the yen.
Huddled in the middle are the Canadian dollar, the rand, the franc and the pound, all of them unchanged against each other on the day.
As well as the ZEW surveys, yesterday's ecostats included a weaker-than-expected 0.2% monthly increase in US Retail sales and a set of UK inflation data almost exactly in line with forecast.
The consumer price index (CPI) was lower again, putting the rate of inflation at 4.8% in the year to November. As long as it holds at that level or below, when the January VAT increase drops out of the calculation inflation will be back within its 1%-3% target range.
Today's UK employment figures are projected to include a 14k increase in jobless claims and an unemployment rate steady at 8.3%.
Euroland reveals October's industrial production and ZEW reports on Swiss business confidence. Canadian manufacturing shipments will probably have fallen in October but ought not to undermine optimism about the broader economy.
It is likely that Euroland government debt auctions will be the focus of spread trading investors' attention, with Italy and Germany both in the market.
Sterling will be wearing its AAA rating as an amulet but should expect to encounter resistance as it approaches the year's high.
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.
'Weak Confidence on Forex Spread Betting Markets Hurts Euro', Article by Moneycorp, last update: 14-Dec-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.
