05.09.14

Good morning,

Following the rate cut by the ECB yesterday the markets reacted with a move away from the EUR towards USD pairs. USDJPY reached a year high of 105.70 during yesterday’s session. Japanese Gross Domestic Product will start the next week off, and could indicate where the Japanese Economy is headed. Chinese Trade Balance is due to be released shortly after the Japanese GDP. USDJPY is currently trading at 105.30

The NIKKEI was trading at 15668.68, down just 7.50 points for the session.

The European Central Bank Interest Rate was cut to a record low yesterday. The ECB cut its main refinancing rate to 0.05 percent from 0.15 percent. Today with EURUSD at a yearly low, and trading at 1.2938 at time of writing, we saw positive German Industrial Production figures showing better than had been expected. Euro Zone Gross Domestic Product results are published today, with a slight decline priced into expectations.

The FTSE100 is trading at 6869.50 down 8.47 points, a decrease of 0.12% while the DAX was trading at 9708.51 down 15.75 points or minus 0.16%

Across the Atlantic to see off the week we will get Unemployment data for both the US and Canada. Canada is expected to remain unchanged at 7.0% with the US expected to post a reduction in unemployment, from 6.2% to 6.1% USDCAD was trading for 1.0883 at time of writing. CABLE was trading at 1.6321 at time of writing. GOLD yesterday dropped to $1257 per ounce briefly, with current prices at $1263

The DOW closed at 17069.58 following yesterday’s session.

Hope you all have a nice weekend.