Markets shaky after stock market tumble

Morning Report: 07.15 London

• The Santa Claus rally took an early hit yesterday as the S&P 500 suffered its biggest one day fall of the winter. Markets are down once again this morning, with many potential catalysts. However the prospect of a US budget deal does seem to point to an increased chance of Fed tapering its activities. The Dollar index is also continuing its weakness.


• One currency bucking the trend so far is the New Zealand dollar which is rallying after the RBNZ opted to keep rates on hold last night.

• Away from these trends, forex markets are mixed with the yen pairs generally making gains after losses yesterday.
 

 Coming up today:

• Coming up today we have ECB President Draghi speaking at 08.00.European industrial production follows at 10.00.
• From 13.30 we have US retail sales data released alongside US unemployment claims.

Trade Idea:

• The AUD/JPY experienced significant selling yesterday, bring the pair from near resistance right down to support. A reversal could set in train here, making a HIGHER trade potentially attractive.

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

Summary: