BetOnMarkets Daily Market Report (2nd January)

Morning Report: 08.30 London

• This morning stock markets and the main ‘risk on’ forex pairs are rocketing higher after a last minute deal
was reached by the US congress on the fiscal plan. The measures only partly address the problems, with the decision on spending cuts delayed for a couple of months. Nevertheless, markets have staged a relief rally, with the yen sinking as traders drop ‘safe harbour’ assets.

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• The USD/JPY is down 0.48%, helping to exaggerate the moves on the rest of the yen pairs, with the AUD/JPY up 1.47%, the EUR/JPY 0.99% and the GBP/JPY lagging slightly up 0.82%.


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• The NZD/USD and AUD/USD are the big movers on the dollar pairs, up 1.10% and 0.99% respectively. The USD/CAD has also staged a dramatic reversal from the post Christmas weakness.

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Coming up today:

• Coming up today we have UK manufacturing PMI at 09.30, with US ISM manufacturing at 15.00.

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Bet Idea:

• Quite how long this ‘fiscal cliff’ rally will last is unclear especially as the issue of spending cuts is still to be resolved. Still, the momentum is clearly behind the AUD/JPY and in the short term at least, there could be more upside to come.


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A HIGHER trade predicting that the AUD/JPY closes above 91.50 in 5 days time could return 116% if successful.


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This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary:


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