BetOnMarkets Daily Market Report (4th January)

Morning Report:
Aussie slumps, Canadian
dollar holds firm

Morning
Report 07.30 London

• Forex and US stock markets
were open yesterday, but today
will be seen by many as the
first proper trading day of
2011.

• European stock markets such
as the FTSE 100 are set for a
strong start to the trading
year after US markets broke
out of their stupor yesterday.
After going nowhere fast for a
lot of December, the Dow Jones
rose by 0.8%.

• The US dollar has started
strongly in 2011, especially
against the Australian dollar
with the AUD/USD
pulling back by over 1.50% in
the last two days.

• This morning the British
pound is showing some relative
strength ahead of today’s
manufacturing data with the GBP/JPY
up 0.45%.

• The Japanese yen and Swiss
franc and are pulling back
with the USD/JPY
up 0.44% and
the USD/CHF
up 0.40%.

Coming up today:

• Coming up today we have UK
manufacturing PMI at 09.30
with a drop in production
expected.

• Following this at 19.00 we
have the reslease of the
minutes from the last FOMC
meeting.

Forex
Trading Tips:

• The Canadian
dollar is the
only currency to hold its
ground against the US dollar
at the moment.

• One contributory factor is
oil prices rising to a 27
month high.

• The USD/CAD
has been trading below parity
throughout the festive period,
but looks to have found
support at 0.9900.

• Will the USD/CAD
continue to trade below parity
or will it bounce back above
it?

• The last time the USD/CAD
attempted a sustained move
below 1.0000 is reversed
higher fairly quickly. This
happened back in April with
one similarity being the
falling average 14 day range.
This means that the 2 week
average of each days trading
range has been falling.

Click
here to view full-sized image

•
This could imply that once again
the USD/CAD
does not have enough momentum to
push below the 1.0000
significantly.

One
way to play this is a HIGHER
trade predicting that the
USD/CAD will be above 1.0000
in 10 days could return 161%
if successful.

Click
here to view full-sized image

Click
here to view full-sized image