EU Morning Report - The trade of the year: the January barometer
02 Jan, 2013 @ 08:06 am BST | By NikolasX
The January barometer is the hypothesis that the financial market’s performance in January foretells their performance for the rest of the year. As the new year begins, investors worldwide will closely monitor currencies, indices and commodities in January in an effort to benefit from new and old trends, aiming for the trade of the year.
The euro (EUR) has strengthened against most of its major counterparts, after a deal was reached to stave off a "fiscal cliff" of sweeping taxation and spending cuts. The bill passed on Tuesday night following the house vote, where 172 Democrats and 85 Republicans voted in favour of it. This development has boosted risk appetite.
§ The Japanese yen (JPY) now trades above the 87.00 mark against the US dollar (USD), a level not seen since July 2010.
§ The Australian dollar (AUD) benefited the most following the “fiscal cliff” deal, rising across the board. The Aussie has appreciated by 100 pips, against the US dollar (USD), so far today.
§ GER 30 (DAX) has commenced the first trading session of the year with a huge gap up, opening at 7743.3 from 7624.3.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.3200||LONG @ 1.3210||33% of deals buy EUR|
|.||USDJPY||86.75||LONG @ 86.80||41% of deals buy USD|
|.||GBPUSD||1.6225||LONG @ 1.6235||27% of deals buy GBP|
|.||AUDUSD||1.0455||LONG @ 1.0455||33% of deals buy AUD|
|.||GOLD||1668||LONG @ 1668||73% of deals buy GOLD|
|.||OIL||91.30||LONG @ 91.30||27% of deals buy OIL|
|.||EUR||09:00||Manufacturing PMI in December||46.3|
|.||GBP||09:30||Manufacturing PMI in December||49.2|
|.||USD||15:00||ISM Manufacturing in December||50.2|
Silver (XAG) is trading above 30 US dollars (USD) an ounce, after falling below this level for first time since August in the previous month. The precious metal had been falling, seemingly non-stop and this rebound is expected to provide a much needed catalyst for further appreciation.
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