BetOnMarkets.com Daily Market Report
The FTSE, DAX and CAC have made a flat start to the day as European stocks play
catch up with the action from US markets last night. The main US market, the
S&P 500 hit eight month highs yesterday, rising 45% from the lows in March.
There was quite a slump in the final hour of trading, but this has been balanced
by US index futures rallying in early trading. All this backing and filling has
put European markets back to the unchanged mark for the day.
We've had
some wobbles over the past few days, but it's interesting to note that even on
the down days, stocks closed well above their lows of the day. Investors are
certainly more edgy after markets have come so far so quickly, but there are
still buyers out there.
Today's main economic announcement of note is US
GDP figures at 12.30 GMT.
Pair in play
The dollar is weak against the pound and euro this morning, with
the GBP/USD perched just above the psychologically important 1.6500 level. Will
it hold this level today for the first time in some while?
The biggest mover this morning is on the US dollar/Canadian dollar
exchange rate which is often tied to price of oil. The USD/CAD is down by almost
half a percent today, putting it within touching distance of the year's low of
1.0751. With Canadian GDP and US GDP due at 12.30 GMT, the USD/CAD is today's
pair in play. There could be a lot of action as the pair gets close to the
1.0751, especially if this happens around midday.
Breakout trades could
be the best way to trade this.
