BetOnMarkets.com Daily Market Report
The FTSE, CAC and DAX have had a storming start to the day, erasing yesterday's
losses in the first 10 minutes of trading. US markets were pretty uninspiring
last night but overnight news flow has continued to be positive with well
received results from insurance giant Aviva.
Today all eyes are on the
UK MPC and European ECB interest rate decisions. Both are expected to keep rates
on hold at 0.50% and 1.00% respectively, but rate decisions aren't the only
thing that central bankers have active on throughout the crisis. Traders will
look for any news on any expansion of the Bank of England's quantitative easing
program.
Following these announcements, we have US unemployment claims
at 12.30 GMT.
Pair in play
The have been some significant moves on the Australian and New
Zealand dollar overnight after their latest employment figures. The Australian
dollar has come out better off, rising against the US dollar this morning while
the New Zealand dollar drops.
The major pairs are relatively quiet though with traders keeping
their powder dry ahead of the rate announcements from the ECB and MPC. GBP/USD
probably has the greater potential for volatility with the Bank of England's
more expansive quantitative easing program.
It may be quiet now, but
giving the potential for action around midday, today's pair in play is GBP/USD.
The pair is just underneath the 1.7000 level which is acting as resistance, but
a surprising result from today's news conferences could see the GBP/USD blast
through this. A One Touch trade higher could be the best way to play this.
