|
|
Spread Betting on FX |
|
|
A review of Spread Betting on FX.
Also see today's Spread Betting on FX News.
Spread Betting on Forex - 18 August 2011
Currency spread betting markets are finally getting twitchy, with the Pound overcoming yesterday's poor economic data and now rallying through the heavy $1.6460/80 resistance to trade at $1.6540. Resistance now turns to support. So traders will be watching for any move back down here.
There is more strong resistance to a close above $1.6550 and if we manage this then dealers may target the highs of the year at $1.6745.
The last few years have shown how difficult it is for the Pound to hold above the $1.64/65 level, with particular pressure building from $1.6740 and higher. If this is challenged then Sterling could be on a rocket but of course we have been here before.
Earlier I was listening to a couple of forex dealers actually talking about the possibility of the Sterling becoming a safe haven currency. With the issues the Euro is experiencing, the Swiss and Yen being so overvalued and with investors trying to divest out of the Dollar, the Pound might benefit as a venue of last resort.
Spread Betting on Forex - 17 August 2011
The forex spread betting markets are fairly peaceful at the moment, watching everything else rush about, with the Pound regaining some of its ground lost and trading back at $1.6430.
Spread Betting on Forex - 16 August 2011
The Sterling – Dollar spread betting pair has fallen on the poor German GDP data and has now given up much of yesterday's rally at $1.6330.
The support at $1.6300/10 is actually quite strong but below here we are looking at $1.6235/45 and $1.6085/95. On the up side, the big level is $1.6480/90 where we have run into a brick wall a number of times over the last few weeks.
Virtually anything over $1.64 is a struggle to hold onto but if we do then sentiment may well turn heavily in Sterling's favour.
Spread Betting on Forex - 15 August 2011
In the FX spread betting markets we are running into the battle to see who can have the weakest currency.
Everyone wants currency weakness to bolster hopes for export growth and, existing, debt devaluation through containable inflation, although I personally believe it to be a false crutch.
In this scenario fundamentals get washed out into the gutter as we can see from the massive over valuations of the Yen and Swiss Franc which are believed to be the safe haven deposits.
Rather like the 'Yen carry trade' of the early 'naughties' this appears to be the safe trade to go for but when it goes wrong it will really go wrong.
Oddly enough while all the chaos of the last week was going on the FX markets were actually quite quiet.
For the Pound the prospects are very difficult to see. Debt has performed well as everyone focuses on the woes of Europe but we must fear that when this has been played out the markets may then turn their fire power onto the UK.
Fortunately, like the US, the UK can make fiscal decisions based solely on their own requirements and this may dissuade the naysayers in the medium term.
The currency has basically been stuck between $1.59 and $1.66 since the end of January which is creating buying and selling opportunities for those who have traded the ranges longer term. Current resistance is at $1.6300/10, $1.6330/40, and $1.6460/80 support at $1.6230/40, $1.6160/80 and $1.6100/15.
Spread Betting on Forex - 12 August 2011
The rumours that swirled about the trouble engulfing the French banks were strongly denied yesterday and jobless claims from across the pond came in better than expected.
This led to forex spread betting investors seeing a recovery in the single currency against the US Dollar, gaining 78 pips to close at $1.4215. At the time of writing, pressure has been reinstated though, with the pair trading at $1.4177.
The Swiss Franc tumbled from its recent lofty highs yesterday, as comments from Swiss National Bank VP Thomas Jordan ignited concern.
He said that a temporary peg to the Euro would be legal and part of the central banks tools which could be used to stop the appreciation in its currency.
The spotlight shone on the pressure on the Swiss economy by a strong Franc and the fact that the intervention earlier in the month was not enough to boost exports and help growth. Overall, the Euro – Swiss Franc rate fell to SFr 1.0800 whilst the US Dollar - Swiss Franc market lost 363 ticks to SFr 0.7623.
Spread Betting on Forex - 11 August 2011
The strength in equities is equating to US Dollar weakness across the board with EUR/USD and GBP/USD being bid higher.
The Australian Dollar is also seeing a nice bounce, having been under pressure of late. AUD/USD is at $1.0285 having recovered from parity on Tuesday.
The US Dollar remains the whipping boy and USD/JPY is only a few ticks above is fifteen year low at ¥76.50. Interestingly it is just about holding its own against the Swiss Franc, just above the recent lows at SFr 0.7290.
Spread Betting on Forex - 10 August 2011
On the economic data front, the highlight of the day is the Bank of England's quarterly inflation report.
We all know that downgrades to their GDP forecasts are expected and so confirmation that interest rate hikes will be left as is for another day can be expected.
With all that has gone on in the past couple of weeks, and oil prices plunging from their highs, the inflation doves will see the weight of the argument behind them for now. As a result, inflation forecasts could well be kept in check when expectations had been for them to be revised upwards.
The Dollar was the dog of yesterday's session on the FX spread betting markets. This came following the FOMC meeting, which caused the Euro to gain ground back to above $1.4300 and Cable to try and get back above $1.6300, but this didn't last long.
This morning both rates are at $1.4320 and $1.6255 respectively, so the Euro has just had the edge on Sterling in the past couple of days. This was partly following the worse than expected manufacturing and industrial figures from the UK yesterday and has brought GBP/EUR back from €1.1500 to €1.1350 this morning.
Spread Betting on Forex - 9 August 2011
The Euro - Dollar spread betting market had a disastrous day yesterday and at one point had fallen nearly 300 pips. Sovereign debt is back on the table and is a big worry, with France apparently being the next in line to be downgraded.
The pair bounced overnight, but is trading lower since the market opened this morning to $1.4242. There is support at $1.4150 and resistance at $1.4236, but the pair has struck against its resistance and could signal further downside here.
For the first time in five months the Australian Dollar dropped below parity with the US Dollar on the back of sovereign debt and US slowdown concerns.
It then bounced back to recover from the two and a half percent intraday loss, showing there was a bit more of a demand for riskier currencies as equity markets rebounded.
This morning the pair is trading lower at $1.0149, but its rebound has been capped by a declining trend line, which can be seen viewing the pair on a ten minute chart. This could signal downside, so traders should be cautious here.
Spread Betting on Forex - 8 August 2011
The US’s rating downgrade at the end of last week was not a huge surprise as the financial spread betting markets had been warned consistently that there was a chance it could happen. Now it’s only a matter of time before the likes of Fitch and Moody’s will follow suit.
Tomorrow evening could be exciting as the FOMC rate decision could well hint at further quantitative easing. This might be welcomed by the stock markets but would only go further to make a bad debt situation worse, as if we hadn’t learnt enough in the last two weeks.
The Dollar has been beaten around the head again after the downgrade with USD/JPY reversing all its gains from Thursday and Friday after the Bank of Japan’s intervention.
It briefly reached back above the ¥80.00 level before swiftly reversing its gains and then slowly but surely has given back half, taking us back below ¥78.00. At the time of writing USD/JPY is at ¥77.85.
Even last week’s better than expected Non Farm data wasn’t enough to boost the US currency and we’ve now seen it slip to a record low against the Swiss Franc. Naturally this is seen as a real safe haven currency and nervous traders were piling their cash into the Franc.
Spread betting and CFD trading carry a high level of risk and you can lose more than your initial deposit so you should ensure spread betting or CFD trading meet your investment objectives and if necessary seek independent advice.
Market Commentry from Financial Spreads.
|
Financial Spreads - tax free* trading on over 2,500 spread betting markets. With a Financial Spreads Account you can trade commission free, 24 hours a day on stock market indices, forex, shares commodities and...read review » Financial Spreads.
|
With financial spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital. Please familiarise yourself with the risks that are involved and before trading, ensure that financial spread betting matches your investment objectives. Seek independent advice where necessary.
Spread Betting on FX - edited by MJ, 19 August 2011.
For related pages and articles see:
Spread Betting on Forex - guide last updated: 18 May 2012
Spread Betting on Forex - a comprehensive guide to forex spread betting with technical analysis, reviews of the forex spread betting companies, how to spread bet, hedging, forex market influences and ...more: Spread Betting on Forex.
Forex Spread Betting - guide last updated: 10 May 2012
Forex Spread Betting: a guide to forex spread betting reviewing the forex markets, risk management, where to trade currencies, forex spread betting technical analysis, market commentary and ...more: Forex Spread Betting.
Forex Futures Spread Trading - guide last updated: 27 April 2012
Forex Futures Spread Trading: a close look at Forex Futures Spread Trading with a Forex Futures spread trading price comparison, how to spread trade on Forex Futures and Forex Futures commentary. Despite rising to the highest level for more than three weeks, hitting $1.3263, the euro finished ...more: Forex Futures Spread Trading.
Financial Spread Betting on Forex Futures - guide last updated: 13 April 2012
Financial Spread Betting on Forex Futures: an in-depth look at Financial Spread Betting on Forex Futures with a Forex Futures trading price comparison, how to trade Forex Futures and Forex Futures commentary. As the euro bounced off support at $1.3030 the bulls gathered momentum and took ...more: Financial Spread Betting on Forex Futures.
Online Forex Futures Spread Betting - guide last updated: 30 March 2012
Online Forex Futures Spread Betting: a close look at Online Forex Futures Spread Betting with a Forex Futures price comparison, how to trade Forex Futures and Forex Futures market commentary. The euro ran out of a bit of steam as the week drew to an end, but news that EU finance ministers will ...more: Online Forex Futures Spread Betting.
Spread Betting Forex Futures Trading - guide last updated: 16 March 2012
Spread Betting Forex Futures Trading: a comprehensive look at Spread Betting Forex Futures Trading with a Forex Futures price comparison, how to trade Forex Futures and Forex Futures market commentary. EUR/USD is at $1.3080 at the time of writing so traders will be focusing on support and ...more: Spread Betting Forex Futures Trading.
UK Forex Futures Spread Betting - guide last updated: 02 March 2012
UK Forex Futures Spread Betting: a comprehensive look at UK Forex Futures Spread Betting with a Forex Futures spread trading price comparison, how to trade Forex Futures and Forex Futures market commentary. It was a case of sideways trading yesterday for EUR/USD as those spread betting on forex are waiting to ...more: UK Forex Futures Spread Betting.
Forex Futures Spread Betting UK - guide last updated: 17 February 2012
Forex Futures Spread Betting UK: a close look at Forex Futures Spread Betting UK with a Forex Futures trading price comparison, how to trade Forex Futures and Forex Futures commentary where yesterday's bullish economic data sent the US currency higher against the yen. At the time of writing USD/JPY is ...more: Forex Futures Spread Betting UK.
Forex Futures Spread Betting - guide last updated: 03 February 2012
Forex Futures Spread Betting: an in-depth look at Forex Futures Spread Betting with a Forex Futures trading price comparison, how to trade Forex Futures and Forex Futures commentary where the NFP today could provide some excitement for currency traders but for now support and resistance in EUR/USD is ...more: Forex Futures Spread Betting.
Spread Betting on Forex Futures - guide last updated: 20 January 2012
Spread Betting on Forex Futures: a close look at Spread Betting on Forex Futures with a Forex Futures spread betting price comparison, how to trade Forex Futures and Forex Futures commentary where, on the forex spread betting markets, the euro has caused some pain for those bears that have been enjoying the recent downward ...more: Spread Betting on Forex Futures.
FX Spread Trading - guide last updated: 06 January 2012
FX Spread Trading: an in-depth review of FX Spread Trading with an FX spread trading price comparison, how to trade FX and FX commentary where the euro broke to a new 14 month low yesterday taking it below $1.2800 where it remains this morning at $1.2785. The selling pressure ...more: FX Spread Trading.
Financial Spread Betting on FX - guide last updated: 23 December 2011
Financial Spread Betting on FX: a comprehensive look at Financial Spread Betting on FX with an FX trading price comparison, how to trade FX and FX commentary where, in forex spread trading, the euro spiked higher yesterday to around $1.3198, on the back of the ECB's lending spree to 500 Eurozone ...more: Financial Spread Betting on FX.
Online FX Spread Betting - guide last updated: 09 December 2011
Online FX Spread Betting: a comprehensive look at Online FX Spread Betting with an FX trading price comparison, how to trade FX and FX commentary where, despite hopes that European Union leaders would make some progress at the summit yesterday, we were left disappointed as they ...more: Online FX Spread Betting.
Forex Spread Trading - guide last updated: 25 November 2011
Forex Spread Trading: an in-depth look at Forex Spread Trading with a Forex spread trading price comparison, how to trade Forex and Forex commentary where the euro remains the whipping boy in the forex spread trading markets with downside pressure for EUR/USD this morning, albeit not ...more: Forex Spread Trading.
Financial Spread Betting on Forex - guide last updated: 11 November 2011
Financial Spread Betting on Forex: a comprehensive look at Financial Spread Betting on Forex with a Forex spread betting price comparison, how to trade Forex and Forex commentary where forex traders are still very wary of the single currency following the sharp sell off recently and increased volatility in the forex spread betting ...more: Financial Spread Betting on Forex.
Online Forex Spread Betting - guide last updated: 28 October 2011
Online Forex Spread Betting: a close look at Online Forex Spread Betting with a Forex trading price comparison, how to trade Forex and Forex commentary where the appetite for risk boosted the single currency way beyond the expectations of many as EUR/USD went from strength to ...more: Online Forex Spread Betting.
Spread Betting FX Trading - guide last updated: 14 October 2011
Spread Betting FX Trading: an in-depth look at Spread Betting FX Trading with an FX trading price comparison, how to trade FX and FX commentary where FX trading markets are largely flat this morning so for now the dollar's recent weakness is taking a respite. The euro has made some ...more: Spread Betting FX Trading.
UK FX Spread Betting - guide last updated: 30 September 2011
UK FX Spread Betting: a comprehensive look at UK FX Spread Betting with an FX spread betting price comparison, how to trade FX and FX commentary where safe haven currencies were back in the picture on the FX spread betting markets and the Yen and Dollar took advantage of ...more: UK FX Spread Betting.
FX Spread Betting UK - guide last updated: 16 September 2011
FX Spread Betting UK: an in-depth look at FX with an FX trading price comparison, how to trade FX and FX commentary where FX spread betting markets are gearing themselves up for the finance meeting by showing a degree of nervousness, with the Dollar gaining ...more: FX Spread Betting UK.
FX Spread Betting - guide last updated: 02 September 2011
FX Spread Betting: an in-depth look at FX with an FX trading price comparison, how to trade FX and FX commentary where FX spread betting markets see many pairs just drifting sideways. Hardly surprising with Non Farms out later today and ...more: FX Spread Betting.
Spread Betting on FX - guide last updated: 19 August 2011
Spread Betting on FX: an in-depth look at Spread Betting on FX with an FX trading price comparison, how to trade FX and FX commentary where the currency spread betting markets are finally getting twitchy, with the Pound overcoming ...more: Spread Betting on FX.
Spread Betting Forex Trading - guide last updated: 05 August 2011
Spread Betting Forex Trading: an in-depth review of spread betting forex trading with a forex trading price comparison, how to trade forex and forex spread betting market analysis where, on the forex spread betting markets, the Euro has had a bounce this morning after quite a disastrous fall ...more: Spread Betting Forex Trading.
Forex Spread Betting UK - guide last updated: 14 March 2008
Forex Spread Betting UK - a review of forex spread betting for UK investors, with a forex comparison of UK spread betting companies, how to spread bet on forex with UK brokers, an introduction to forex spread betting and ...more: Forex Spread Betting UK.
UK Forex Spread Betting - guide last updated: 29 February 2008
UK Forex Spread Betting - a review of UK forex spread betting, where to spread bet on forex, how to spread bet on forex plus an introduction to forex spread betting and ...more: UK Forex Spread Betting.
|
|
|
|
|
With spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital so please familiarise yourself with the risks that are involved and, before trading, ensure that spread betting matches your investment objectives. Seek independent advice where necessary.
|
* Based on current UK tax law. Tax law may change and can differ depending on your personal circumstances.
|
|
|
|
|
