Solid start to the week
The new week has so far started in a healthy fashion after investors took heart from Spanish plans to directly inject government debt into troubled Bankia. An absence of bad economic news from other areas is also playing its part so far, though liquidity could be thin on the ground today with public holidays in France, Germany and the US.
The dollar pairs are on the move this morning, with the AUD/USD and NZD/USD the top movers, both up around 0.70%. The dollar index is seeing some serious selling pressure for the first time in a week. Gold is also benefitting from the weaker dollar, with the precious metal up another 0.60%. Gold has now bounced off support around the $1525 level at the fourth time of asking.
The EUR/USD is performing well, up 0.33%, though the pound is lagging considerably, with the GBP/USD up just 0.13% and the GBP/JPY down 0.21%. The USD/JPY is driving lower as money switches out of the dollar and into the yen.
There is no economic data of real note today with MPC broadbent´s speech at 16.00 the only real market moving event from the planned economic calendar.
The NZD/USD looks as though it might be turning a corner as the pressure on financial markets abates. The eurozone is still not out of the woods, but at present it seems officials have done enough to placate markets. This won´t last forever and there will no doubt be another violent move lower at some point. In the mean time, there could be some room for further NZD/USD upside.
A good way to play this on BetOnMarkets.com might be a HIGHER trade on the NZD/USD predicting that the pair closes above 0.7675 in 3 days time for a potential return of 132%. Get this trade now, go to: http://goo.gl/2yMM9
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