Image Image Image Image Image Image Image Image Image Image
Scroll to top

Top

Daily Market Review – 6/07/16

The broad markets have turned negative the past twenty-four hours. Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More and the Single Currency The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More continue to find themselves under immense pressure. Shares in Europe are suffering too and under extreme focus are the Italian banks which are losing value quickly. Italy is Europe’s third biggest economy and its banking sector has been under stress since the financial crisis of 2008. Many of the Italian banks are carrying bad loans at a high percentage and the risk averse trading that has ensued since the Brexit has made a bad situation worse.

Asian markets traded down this morning and the JPY The official currency of Japan is the JPY The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen to investors and t... More to investors and t... More to investors and t... More which is also knows as the Japanese Yen to investors and t... More continued to get stronger versus the USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More in safe haven trading. Bond yields also continue to be under a massive amount of pressure. Market psychology appears to be extremely fragile and even value traders may become nervous in this environment.

German Factory Orders came in below expectations this morning. This follows the American Factory Orders report yesterday which went negative. Mario Draghi will speak in Frankfurt this morning. Critics of Central Banks are becoming more vocal as monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More from the major governments is coming under the microscope. The BoJ, ECB The European Central Bank The European Central Bank, ECB The European Central Bank, ECB, is the Central Bank of the European Union and sets the monetary poli... More , is the Central Bank of the European Union and sets the monetary poli... More , ECB, is the Central Bank of the European Union and sets the monetary poli... More , BoE and Fed The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More is the Central Bank of the United States of America and sets the monetary policy... More are all in the same boat. The worry is that the Central Banks have very little ammunition left in case the economies in Japan, Europe, the U.K. and USA turn worse. In other words, investors are growing concerned governments will not be able to save the day if life boats are needed.

So where should traders turn? Fortunately traders can trade assets Can be stocks, commodities, indexes or Forex currency pairs. More by selling them. While safe haven assets Can be stocks, commodities, indexes or Forex currency pairs. More such as the USD and JPY are finding favour, Indices can be sold and physical resources such as Crude Oil can be shorted. Good risk management is needed because the markets are never a one way avenue. Gold and Silver have continued to also find takers in this environment.

The U.S. will get the ISM Non-Manufacturing PMI reading today and the FOMC Meeting Minutes from the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More . Wall Street turned in a negative day of trading yesterday as it woke up to find the global markets turning negative. Market psychology is very important at this juncture. Investors need to take a deep breath and understand that the markets still present plenty of opportunities to take advantage.

GBP/USD chart this morning approximately 7:30 GMT, 6 July 2016

GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More /USD chart this morning approximately 7:30 GMT, 6 July 2016