Encouraging economic developments provided CFD trading investors with buoyant markets. Despite weaker than expected US durable goods orders, a rise in US consumer confidence to its highest level since February last year provided stock markets and risk assets with an overall a boost.

It was a similar story in Europe as Italy held a successful auction of 10-year debt at a lower than expected cost at the same time as Portugal approved a third review of its bailout agenda.

However, there was some negative news, with the ECB momentarily deferring the eligibility of Greek bonds as security for its backing and the Emerald Isle calling a referendum on the European fiscal compact.

Nevertheless, expectations of a strong take up at today’s ECB second 3-year Long term refinancing operation (LTRO) should keep markets on the straight and narrow for the rest of this week.

As for the USD, given the upbeat equity market mood overnight it is no shock that the Greenback was on the slide as the EUR appears determined before today’s 3-year LTRO by the ECB.

Bernanke’s Semi-Annual Monetary Policy Report later today will provide the Dollar some bearing but no major surprises are expected.

EUR/USD will continue to rally if we are correct about a strong €600-700 billion take up at the LTRO but it will be interesting to see if the 1.35 level can be breached.

Finally, attempts by SNB head Jordan repeating his standpoint of protecting the EUR/CHF bottom of 1.20 has been relatively ineffective.

EUR/CHF has benefited from a strong correlation with actions in interest rate differentials.

This suggests that it should rise in German yields against Swiss yields for EUR/CHF to move up. This has a strong case given the decline in Swiss economic data over recent months.

Ultimately EUR/CHF could move higher but over the short-term, it is doubtful to shift far from the 1.20 level.

 
CFDs, margined forex and financial spread trading are leveraged products. They carry a high level of risk to your fund. It is possible to lose more than your initial capital outlay with these products and they may not be suitable for all investors, do ensure that you fully understand the risks involved, seek independent financial advice if necessary.

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Euro sentiment remains high after the Greek deal was finally agreed last week. The question is, how long will it last?

For starters we have several big ticket Euro data releases due later this week.

In no particular order German and EU wide CPI, German unemployment and EU PPI all hit the wires over the next few days and we also have the second LTRO starting today and ending tomorrow.

The CFD trading market is prepared for around €475bn to be allocated with the Spanish and Italian banks expected to be major users of the ECB funds.

The LTRO operations are QE by the back door, and as such will keep Euro sentiment high and also the euro at its recently elevated levels in the very near-term.

Risks on the downside are if the data outlined above disappoints but also if we see a large increase over and above the expected levels.

Greater demand for LTRO funds would indicate continued funding problems in the Eurozone banking system and a nervous market that is already heavily shorting the euro is looking for any reason to sell it.

Sterling looks set for a quiet week data wise with only the manufacturing and construction PMI figures of note later this week. The consensus estimates for both suggest very slight declines from last month but nothing large enough to worry the currency markets at all.

Focus is turning towards March’s budget and how the Chancellor plans to kick start the UK economy without room for tax cuts or increased spending.

The answer will probably be by lowering tax on lower earners by increasing tax free allowances and paying for it by increasing taxes on higher earners indirectly via tax relief on pension contributions or some other method that can be easily swallowed. Income tax is very unlikely to be touched.

Today kick starts a very important week for the US, there has been a lot of optimism in the markets after the positive jobs number earlier in the month and this week will be a good barometer of where the US economy stands from a trend perspective.

The market thinks we are at the beginning of an uptrend, but got it wrong this time last year in similar circumstances. We have durable goods orders, the GDP number, ISM manufacturing and personal consumption data all due this week and because of the optimistic slant the risk remains firmly to the downside.

 
CFDs, margined forex and financial spread trading are leveraged products. They carry a high level of risk to your fund. It is possible to lose more than your initial capital outlay with these products and they may not be suitable for all investors, do ensure that you fully understand the risks involved, seek independent financial advice if necessary.

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This week is likely to be a much calmer and quieter affair in comparison to last week which brought the ongoing Greek debt crisis to a close for the short-term.

Whether this will last remains to be seen as the struggling nation will have to renew future debt deadlines in addition to steering through an election in April.

Expect the euro to trade in limbo as CFD trading investors decide on their view over how successful this latest deal will be.

Comments have been coming thick and fast from finance ministers around the world with statements ranging from ultra positive to cautious.

The G20 met in Mexico over the weekend with the topic of Euro contagion at the top of the agenda.

The Eurozone countries pledged to reassess the strength of their bailout fund in March, which would clear the way for other G20 countries to contribute via the International Monetary Fund.

The G20 said “This will provide an essential input in our ongoing consideration to mobilise resources to the IMF”.

Data this week comes mainly from the States with US durable goods orders on Tuesday, GDP on Wednesday and jobless claims on Thursday.

The US government will be expecting positive figures across the board as they continue to spend their way out of recession to attract growth.

CFDs, spread trading and FX are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. It is possible to lose more than your initial investment and you may be required to make further payments. These products may not be suitable for all customers therefore ensure you understand the risks and seek independent advice.

CFDs trading update from Michael Hewson, Market Analyst, CMC Markets.

This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

Neither CFDs-Online.com nor any contributing company or individual accepts any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

CMC Markets UK Plc which is authorised and regulated in the UK by the Financial Services Authority.

The Euro is enjoying a healthy bounce after the completion earlier in the week of a further Greek bailout to cover March debt obligations and through positive German data.

Data from Germany showed that GDP had shrunk in Q4 by 0.2%, however strength in recent ZEW and IFO surveys suggest that the economy will escape falling into recession.

The euro was also helped by good news from over the pond as weekly US jobless claims came in unchanged at 351k and this level remains the lowest since 2008.

This number has helped to boost the expectation that the approaching Non Farm Payrolls on Friday 9 March will beat market expectations.

Recently US data has started to show signs of improvement as the powerhouse that is the US economy looks as though it is slowly clawing back to growth.

For the forex CFD trading markets this improves the appetite for risk and currently this is USD negative.

We have seen EUR/USD especially push higher and test 1.34- the highest level since December, GBP/USD has also edged higher but the pound remains a little subdued.

Wednesday’s MPC minutes helped to put a dampener on the pound as expectations rose for further QE in 2012- probably in May.

With inflation falling and economic growth struggling, QE remains very much on the table with a cocktail of low interest rates to remain.

The pound has fallen on the back of this market feedback and is struggling to gain momentum even in a sentiment which has turned risk-on.

Today is a quiet day for data, although we do have the G-20 meeting over the weekend. Little is expected from the weekend meeting. The talks will be dominated by the European debt crisis and could involve discussions on IMF contributions.

CFDs, spread trading and FX are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. It is possible to lose more than your initial investment and you may be required to make further payments. These products may not be suitable for all customers therefore ensure you understand the risks and seek independent advice.

CFDs trading update from Michael Hewson, Market Analyst, CMC Markets.

This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

Neither CFDs-Online.com nor any contributing company or individual accepts any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

CMC Markets UK Plc which is authorised and regulated in the UK by the Financial Services Authority.

For what seems like an age, something that had nothing to do with Greece was released onto the CFD trading markets this morning, with the minutes from the most recent Bank of England MPC meeting.

The bank as expected kept interest rates on hold and this decision was achieved with a 9-0 shutout implying that the base rate will not be rising anytime in the near future.

A slight weakening factor for Sterling as an increase to the interest rate would add to the underlying value of the currency. This hardly came as a surprise as an increase in the rate would cripple growth in what are troubled times.

The more interesting vote was the 7-2 result over quantitative easing. 7 voted in favour of the £50bn extra that has been pumped in while 2 members (David Miles and Adam Posen) wanted £75bn to be added.

This caused most of this morning’s weakness in Sterling as there is potential that more QE could be pushed into the UK economy. The BoE also sees credit remaining tight and looks for global growth to weaken.

I had to mention the Greek saga which seems to be coming to a close, but the main talking point will be if problems re-open looking ahead to the rest of the year.

It is thought the new loan of €130bn will cover Greece in the short term, but what will happen when that starts to run out. Various countries that form the IMF are looking for officials from the European Union, ECB and IMF to monitor the Greek government from Athens and make sure the cuts actually take place.

It looks like the euro will remain in limbo with the small gains it has received this weak under threat if this cautious outlook on Greece continues.

CFDs, spread trading and FX are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. It is possible to lose more than your initial investment and you may be required to make further payments. These products may not be suitable for all customers therefore ensure you understand the risks and seek independent advice.

CFDs trading update from Michael Hewson, Market Analyst, CMC Markets.

This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

Neither CFDs-Online.com nor any contributing company or individual accepts any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

CMC Markets UK Plc which is authorised and regulated in the UK by the Financial Services Authority.

European markets have pushed to seven month highs today on optimism about a positive conclusion to today’s EU finance ministers meeting, as well as the surprise cut by the Chinese central bank to its reserve requirements ratio at the weekend.

While there remains broad scepticism that this bailout will effectively draw a line under the long running Greek debt saga, it would appear that CFD trading markets believe that for now, an imminent messy default scenario could well be averted.

Not unexpectedly, the major gainers have been the broader cyclicals of mining stocks, oil and gas and financials.

Amongst the main gainers are BHP Billiton and Vedanta due to the weekend cut in China’s reserve requirements.

Oil and gas shares have jumped on the back of rising oil prices as tensions in the Middle East remain high, while BP shares have outperformed after one of its partners in the Gulf Of Mexico oil spill settled with the US government.

The under performers are the more defensive shares of the utility companies with Severn Trent and United Utilities slipping back.

US market closed.

The US dollar has slid back sharply against all G10 currencies as FX CFD trading markets look to factor in a positive outcome from today’s Eurogroup meeting.

Both the Australian and New Zealand dollar have made good gains ahead of some important announcements later tonight.

The RBA is due to make available the latest minutes of the last rate meeting, where the bank surprisingly kept rates on hold, while the RBNZ is due to announce its latest 2 year inflation expectations.

The single currency has also made good gains on optimism about the outcome of tonight’s Eurogroup meeting but continues to struggle just below its highs for this year around the 1.3300 area.

The Japanese yen hit its lowest levels against the US dollar since the 4th August last year after the country posted a record trade deficit and ratings agency S&P warned on the country’s sovereign debt rating.

Crude oil prices have continued their upward trajectory with US prices hitting 9 month highs, while Brent prices jumped above the $120 for the first time since May last year.

Fears about the effects of the Iranian export ban and increased tensions in the region have continued to help underpin prices.

Copper prices, despite the cutting of reserve requirements in China haven’t rallied as much as expected staying below Friday’s highs and slipping down from the open.

Gold prices continue to trade within their recent range, but it has remained above the 144 day MA support of the last two weeks. It would need to move above the January highs at $1763 to signal a potential test of the $1,800 level.

CFDs, spread trading and FX are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. It is possible to lose more than your initial investment and you may be required to make further payments. These products may not be suitable for all customers therefore ensure you understand the risks and seek independent advice.

CFDs trading update from Michael Hewson, Market Analyst, CMC Markets.

This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

Neither CFDs-Online.com nor any contributing company or individual accepts any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

CMC Markets UK Plc which is authorised and regulated in the UK by the Financial Services Authority.

The CFD trading markets entered Friday in limbo as investors and traders await the latest news from talks between Greek officials and Europe.

Hope rose overnight as comments of “We are almost there” were stated. The general view is that an agreement has to be reached as the deadline for Greece to receive the latest transfer of EU/IMF funds to avoid a default on its loans closes in.

A default would be catastrophic for Europe with the ECB potentially having to support the banks that have purchased Greek bonds. Otherwise, these banks could become insolvent and that could lead to a second credit crunch in the Eurozone.

Earlier today, we had the release of January’s retail sales figures for the UK showing a 0.9% jump on the previous month.

Obviously, the sales will have been affected by the slashing of prices by stores over the period after Christmas and this has been taken into account as Sterling hardly moved on the back of this number.

This afternoon brings inflation figures from the US with CPI expected to come out at 0.3%. This is likely to be largely ignored as we wait for more new from Athens.

 
CFDs, margined forex and financial spread trading are leveraged products. They carry a high level of risk to your fund. It is possible to lose more than your initial capital outlay with these products and they may not be suitable for all investors, do ensure that you fully understand the risks involved, seek independent financial advice if necessary.

Content by CurrenciesDirect.com. This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

Things are getting ugly. Greek ministers have raised the stakes in the ongoing battle between the Hellenic republic and their EU and IMF paymasters by suggesting for the first time in public that ‘forces’ are pushing Athens out of the Euro.

The fact that Greece was likely to eventually leave the Euro was assumed by a large portion of investors and politicians, but never stated in public by officials.

The latest development is interesting for the Euro because it looks like the stance of Germany and the Netherlands on Greece leaving is hardening.

The Greek move looks like a bluff to force the EU’s hand and make sure the next tranche of bailout money arrives.

Bluff or not, the forex CFD trading market has sold the euro in a big way over the last day and a half, and from trading over 1.33 earlier this week the EUR/USD briefly traded through 1.30 early this morning.

The 1.30 level looks key from here on in, if we see a significant break below there looks room for further declines to the downside but it will take something big to know the pair out of recent trading range.

The Bank of England inflation report gave little away in terms of the banks plans for further QE over the coming months.

As the Bank predicted, inflation saw a big drop off and will gradually move back towards the two per cent target but both the Governor and Chief Economist were tight lipped over what this meant for further monetary easing.

Unemployment data yesterday was slightly higher than forecast and Sterling did weaken against the Euro and Dollar in the afternoon but has found some support this morning after much better than expected consumer confidence figures overnight.

The Federal Reserve minutes, released last night, were similar to the inflation report because they gave little away about changes in the stance to ultra-low interest rates or the likelihood of QE3.

The Jobs number looks to have muddied the water and the Fed looks happy to sit on their hands until a definite trend is confirmed either way. In the meantime the Dollar will continue to be dragged around by developments in the Eurozone.

 
CFDs, margined forex and financial spread trading are leveraged products. They carry a high level of risk to your fund. It is possible to lose more than your initial capital outlay with these products and they may not be suitable for all investors, do ensure that you fully understand the risks involved, seek independent financial advice if necessary.

Content by CurrenciesDirect.com. This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

The fact that the second bailout for Greece appears to be stalling means markets will remain anxious, leaving risk assets susceptible to further falls.

The Greenback will be the main benefactor in these conditions. Poor Eurozone growth figures for Q4 2011 released today will compare with relatively firm data including industrial production and the Empire manufacturing survey in the US, leaving the story of US economic recovery unharmed.

The single European currency has lost some momentum and looks open to additional falls.

The fact that EU finance ministers have cancelled a summit due to be held today means that CFD trading markets will have to extend their wait for an agreement on a second bailout deal for the Greeks.

Reports that Greece’s political leaders will send a pledge to European officials today that they will apply more austerity measures will provide some hope that things are moving in the correct course. However, an ominous cut-off date for debt redemption in March will mean increased anxiety.

Forex CFD trading investors are still shorting EUR although positions have moved close to its 3-month average suggesting less potential for insistent short covering.

After the downgrade of several Eurozone countries yesterday and the drop in Q4 2011 Eurozone GDP today, prudence will be the common theme today, leaving EUR/USD on the defensive and opening the door for a test of technical support around 1.3026.

So far today Sterling has fallen against the Euro and the USD following disappointing unemployment figures.

UK unemployment rose by nearly 50,000 to 2.67m with an overall rate of 8.4%. Figures from the Office for National Statistics indicated that the average earnings rose by 2% until December which was unchanged.

These figures are well below the inflation rate and mean a continued squeeze on consumer spending power. GBP currently trades and 1.1921 and 1.5691 against the EUR and USD respectively.

 
CFDs, margined forex and financial spread trading are leveraged products. They carry a high level of risk to your fund. It is possible to lose more than your initial capital outlay with these products and they may not be suitable for all investors, do ensure that you fully understand the risks involved, seek independent financial advice if necessary.

Content by CurrenciesDirect.com. This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.

Amid wide scale protests, the Greek Parliament finally passed further austerity measures needed to secure another tranche of funding from the EU and IMF.

Not surprisingly the EUR/USD forex CFDs rallied in the Asian session overnight and are holding onto gains in early trading this morning.

Dissenters within the pro government parties were ousted, the conservative New Democracy party expelled 21 of 83 deputies with the Socialist PASOK party throwing out another 20 of its 153.

A warning from the Prime Minster that Greece was approaching “Ground Zero” applied enough pressure to get the vote through quite comfortably in the end, but how long the Greek political system can hold up in such harsh conditions is unclear.

There is rising support within Greece and, if you believe reports, in Germany too, for a complete Greek withdrawal from the Euro.

Whether they are pushed by the Germans, leave on their own terms or by a combination of both, indefinite austerity imposed by outsiders may eventually become too much for the Greeks. This vote may mark the half-time interval for the Greek saga, the real fireworks are yet to come.

The UK economy will avoid a double dip recession according to the CBI, but only just. John Cridland, Director General of the CBI, estimates growth to be 0.2% in the first quarter, keeping the UK economy out of technical recession.

An optimistic forecast in our opinion, but the CBI are very well respected in the CFDs online market and positive news is thin on the ground at the moment.

The Bank of England inflation report is announced on Wednesday and is expected to show a sharp drop in inflation and mirroring the Bank’s forecast late last year.

Sterling is unmoved from Friday against the Euro and Dollar, the QE announcement was almost fully built into the price beforehand.

The US has a light week in terms of data, with the more important releases cluster toward the end. US CPI on Friday along with the Federal Reserve minutes from the last meeting are the highlights.

The Fed minutes are interesting in terms of their assessment of the economy before the recent positive jobs numbers and how the Fed interprets the clear uptick in the employment market in terms of further QE.

 
CFDs, margined forex and financial spread trading are leveraged products. They carry a high level of risk to your fund. It is possible to lose more than your initial capital outlay with these products and they may not be suitable for all investors, do ensure that you fully understand the risks involved, seek independent financial advice if necessary.

Content by CurrenciesDirect.com. This content should not be construed in any circumstances as a recommendation or solicitation of any offer to buy or recommendation or offer to sell any security or other financial instrument.