Yen in control after late evening slump
This morning markets are continuing the sell off that started late last night. The initial euphoria coming from Fed Chair Bernanke´s comments that further easing might be needed, has given way to concern that the US economic recovery may be more fragile than first hoped. Traders are also re-assessing plans for a massive extension of the European firewall. Some argue that such a big firewall could send mixed signals. It may be reassuring, but it could also infer that the Eurozone´s worst case scenario is bigger than previously thought. The latter thought is gathering traction on news that Spain has re-entered recession, further questioning the harsh austerity conditions being imposed there and in Greece.
The yen pairs are on the move, with the AUD/JPY dropping by 0.86%. The GBP/JPY is down 0.60% with the USD/JPY down 0.53%. The Aussie is certainly being singled out this morning, with the AUD/USD leading the dollar pair fallers, down 0.38%. Gold is slipping slightly, down 0.22%.
Coming up today we have European M3 money Supply at 09.00. UK current account data follows at 09.30 with a significant drop to -8.5bn expected. Final GDP figures are also released at the same time. US core durable goods orders are released at 13.30 with an increased to 1.6% expected.
The Australian dollar has come under pressure in the last couple of days, with the AUD/USD failing to break through the upper part of the falling channel. The lower channel line could beckon, which creates an opportunity with a LOWER trade on BetOnMarkets.com
A LOWER trade predicting that the AUD/USD closes below 1.0320 in 3 days time could return 295% if successful. Get this trade now: http://goo.gl/2th7L
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