Volatile trading remains dominant theme in wise money markets

Volatile trading remains on the cards as we move into the weekend, after wild swings overnight in the Japanese equity markets and Yen as traders and investors remain unsure over overall direction.
Volatile trading remains dominant theme in wise money markets
The Yen traded as high as 154.67 against Sterling before the bottom dropped out of the equity market, which after trading up 2.5 per cent fell to a session low of minus 3.5%, dragging the yen along with it towards the low 152’s.

The overall market closed flat on the day bringing to an end once of the strangest days trading in many years. The question is will that volatility carry through to European and American sessions?

Early signs are that it should be calmer, with Sterling roughly unchanged from where we left it yesterday evening. The biggest move overnight has been in the Euro – Dollar pair, positive European data this morning driving the single currency slightly higher against the Dollar in low volumes with German consumer confidence beating expectations slightly.

Today’s data of note is centred on Europe and the US with more German data due – business climate figures and this afternoon US durable goods orders.

Every high profile US figure is suddenly doubly important in light of the Fed announcement this week, the markets main job over the next few months will be trying to discount the Fed withdrawing stimulus, even if that is still several years away.

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