Forex Update 5 April 2013

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Financial Spreads: Spread Betting and CFD Trading

Forex Trading: 05 April 2013

Yesterday ECB President, Mario Draghi, commented on inflation risks as 'broadly balanced' after a meeting where policy makers decided to leave interest rates unchanged at 0.75%.

It looks as though euro investors liked what they heard. The struggling common currency was pushed into positive territory versus the dollar and EUR/USD ended 89 points up at $1.2934.

Forex Trading: 04 April 2013

In the forex spread betting markets the euro rose slightly against the dollar, gaining 24 points to $1.2845 following media reports that the IMF will chip in €1bn to save Cyprus from further troubles.

Later today, the European Central bank will announce its benchmark interest rate. The rate is expected to stay unchanged at 0.75% but the rhetoric of the statement will be the main attraction.

Forex Trading: 03 April 2013

Arguably the most important bit of news regarding Eurozone yesterday was the new record for unemployment which raised fresh concerns about its struggle to spur growth.

The unwanted record sent the euro down 29c to $1.2816. The euro-dollar slump was somewhat limited by optimism that the US economy is on the mend and, therefore, the markets continue to support the risk-on trade.

Forex Trading: 02 April 2013

Sorry, there is no forex market commentary for today.

Forex Trading: 28 March 2013

Due to the interconnections of the European economy, the jury is still out on the level of contagion for the whole common market. Yes, the Cypriot banks will open later today but the capital controls are designed to stop a run on the banking system.

As far as the FX markets are concerned, these unknowns have sparked a negative sentiment for the euro and it has resumed its slump versus the dollar. On Wednesday EUR/USD hit its lowest level since mid November at $1.2766, it ended the day down 80 points at $1.2779.

Forex Trading: 27 March 2013

The euro hardly changed yesterday, closing at $1.2860, as online spread betting investors needed time to assess the consequences of Cyprus' bailout for the wider banking system.

The introduction of capital controls, the almost certain haircuts for deposits over €100,000 and the possibility that even those deposits under €100,000 would be affected, have all triggered concerns of contagion to rest of Europe and beyond.

This morning's confirmation of the French contraction is putting extra pressure on the single currency as it trades at $1.2825.

Forex Trading: 26 March 2013

The enthusiasm in the global spread betting markets following the bailout agreement in Cyprus was short lived.

Reports of capital controls and hefty haircuts for deposits over €100,000 sparked fears that the same could happen elsewhere in Europe.

As such, after initially crossing above the $1.3000 mark, the euro reversed course to tumble 112 points overall, closing at $1.2852.

This morning barely resembles any kind of bounce, with the EUR/USD pair trading at $1.2860 at the time of writing.

Forex Trading: 25 March 2013

As Cypriot officials headed to Brussels to reach an agreement with the European Union, investors became hopeful that a solution could be found to save the country from financial meltdown before Monday's deadline.

That optimism sent the euro 92 points higher against the US dollar to $1.2989.

In fact, during the early hours of this morning, the single currency actually managed to get itself back above $1.3000, reaching as high as $1.3045.

Unfortunately, the EUR/USD pair has been unable to hold onto those gains as the full details of a new deal are yet to be released. Therefore, at the time of writing, EUR/USD is on the figure at $1.3000.

By Simon Denham, 5 April 2013

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