BetOnMarkets.com Daily Market Report

The FTSE, CAC and DAX have opened down by around a third after a rather mixed session from traders in Asia. Last night the bench mark US index, the S&P 500 hit the psychologically important 1,000 level for the first time since November.

European markets also had a storming session yesterday, coming on the back of a rapid advance over the last few weeks. It is perhaps understandable that investors are booking some profits; the recent rally has exceeded many people's expectations and taken the bears completely by surprise.

Today's top economic announcement is US pending home sales at 14.00 GMT.

Pair in play

There were no surprises from the Royal Bank of Australia overnight as the central bank left rates unchanged at 3%. It's so far been a relatively quiet morning on currency markets but things are start to hot up as the London session gets going.

The pound is managing to hold its ground against the dollar after kissing the underside of 1.7000 yesterday. However, this morning's biggest movements are happening on the yen pairs, especially the EUR/JPY (Euro/Japanese Yen) as traders retrace some of the huge advance made yesterday.

So far, the EUR/JPY has fallen all day and has retraced around 1/3 of yesterday's move. There's a fair chance it could go further and revisit the 136.00 level it blasted through yesterday. One Touch trades and Double (down) trades could be the best way to play this today.