Morning Report: 08.45 London
• Last night the Dow Jones (Wall Street) closed at a new high for 2010. Despite many indicators pointing to complacency in stock markets right now, indices appear to have a Teflon coating that keeps pushing them higher.
• Forex markets are quiet outside of the euro and its neighbour the Swiss franc. The euro is pushing higher and shrugging off Moody’s 5 notch credit ratings downgrade for Ireland. There is very little reaction from markets as this downgrade appears to be a delayed statement of the obvious
• The EUR/USD and EUR/JPY are up 0.5% with 1.3200 acting as firm support on the former.
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• Outside of these currencies, there really isn't much excitement to speak of.
Coming up today:
• We've an unusually quiet calendar today with German ifo business climate the only planned economic announcement of note. Aside from this the EU economic summit rumbles on all day.
Forex Trading Tips:
• The GBP/USD has been unusually quiet this morning. While the Christmas period can bring tighter trading ranges, this usually happens a couple of days around Christmas not a week before.
• To put today's inaction into perspective, the chart below shows the GBP/USD with its 14 day Average True Range and its 1 day ranges below that. You can see that so far, today's range of just 30 pips is the smallest since last Christmas.
• Outside of these currencies, there really isn't much excitement to speak of.
Coming up today:
• We've an unusually quiet calendar today with German ifo business climate the only planned economic announcement of note. Aside from this the EU economic summit rumbles on all day.
Forex Trading Tips:
• The GBP/USD has been unusually quiet this morning. While the Christmas period can bring tighter trading ranges, this usually happens a couple of days around Christmas not a week before.
• To put today's inaction into perspective, the chart below shows the GBP/USD with its 14 day Average True Range and its 1 day ranges below that. You can see that so far, today's range of just 30 pips is the smallest since last Christmas.
Click here To View Full-size image
A good way to play this stalemate might be to predict that it will not last. An In/ OUT trade predicting that the GBP/USD will close outside of 1.5535 or 1.5735 at the close of play on Monday could return 155% if successful.
A good way to play this stalemate might be to predict that it will not last. An In/ OUT trade predicting that the GBP/USD will close outside of 1.5535 or 1.5735 at the close of play on Monday could return 155% if successful.
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