BetOnMarkets.com Daily Market Report
The FTSE, DAX and CAC have made a good start to the trading day, opening up
around 0.75% to 1%. The main reason for this is a late surge of bullishness in
US markets last night that (as it often does), leaves the European markets
playing catch up.
Markets have fallen back a little though and the FTSE
is a sluggish compared to its European peers with volatility in Royal Dutch
Shell shares not helping. This news has been balanced by the latest figures from
the Nationwide showing house prices rose by more than forecast in July. The only
other upper tier economic announcement today is US unemployment claims due at
12.30 GMT.
Pair in play
The Nationwide housing figures appear to have given investors
confidence in the pound this morning. Sterling is in play this, rising 0.7%
against the dollar and the Yen. GBP/USD looks to be the pair in play as traders
push it close to the 1.6500 level which has become an overhead resistance level
over the last couple of months.
Since June, GBP/USD has closed above the
1.6500 level four times, but managed close above it again the next day just
once. Bear trades or double (down) trades could be a good way to play the pair
as it approaches the resistance level once again.
