Dollar Slump Continues in the FX Markets as NZD/USD Sees First Rally in Five Sessions

Last night US dollar staged a late session slump following the release of the minutes from the last FOMC meeting. Even the weak GBP/USD managed to close well above the day’s lows.

The weakness has generally continued through this morning, especially against the yen and CHF with the USD/JPY and USD/CHF down 0.2% respectively. The antipodean currencies of the AUD/USD and are travelling well, up 0.15%.

World stock markets continued their fine run of form with the Dow Jones closing at fresh highs for the year. The FTSE 100′s trend has not been as clear cut though with resistance overhead at 6100.

 

Coming Up Today in the Spread Betting Markets:

  There should be more UK inflation/rate hike speculation today as MPC member Sentance speaks at 09.35. CBI Industrial Order Expectations follows at 11.00.

The day’s main announcements come at 13.30 with core CPI expected to stay at 0.1% and unemployment claims expected to rise at 401K. Fed chairman Bernanke speaks at 15.00, with the Philly Fed Manufacturing Index due at the same time.

 

Fixed Odds Trading Idea – NZD/USD:

  The NZD/USD rallied for the first time in 5 sessions yesterday and the Kiwi is pushing higher again this morning.

The trading range so far this morning is below average at just 25 pips which hints there is room for a bigger move (assuming it comes in the direction set by the last 24 hours).

One fixed odds trade idea is to bet that the NZD/USD will close the day higher than 0.7570 by the close of trading today. If successful, this could return 144%. If your trade is unsuccessful however, you will lose 100% of your trade.

 

And a Quick Looks at the Markets from Yesterday Afternoon:

  Yesterday’s main FX trend was the reversal taking place in the British pound. The morning’s newspapers were full of headlines about forthcoming interest rate hikes, but yesterday’s UK unemployment & jobless claims figures show just why the Bank of England have been so hesitant to vote for an increase.

Indeed in his inflation report speech, MPC chair King stuck to his line about inflation expectations being lower for the future, lessening the chance of a rate hike by the Spring despite above target inflation.

The GBP/USD was down 0.66%, the GBP/JPY down 0.54% and the EUR/GBP up 0.66%. Stock markets, including the FTSE 100, were rallying once again after yesterday’s small wobble.

 

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

Similar Posts:

Share

Leave a Reply