Steady Trading in The Morning

It has been some steady trading during the course of the morning with a bit of volatility around with the yen continuing to weaken during the course of the morning. It is a holiday in Japan today but that has not caused any kind of slumber in the markets and they have been fairly active today morning.

We did have a bit of news over the weekend with the Scottish PM threatening to go ahead a vote of Independence to show their displeasure over the Brexit vote. The Scottish people had voted to stay in the Eurozone but the rest of the UK had voted to move out and Scotland did not have a choice but to follow suit. This has caused a bit of unrest among the people of Scotland and this is slowly beginning to show through. This is a large risk event surrounding the Brexit process and this is likely to keep the pound under pressure during the course of the day and going forward as well.

On Friday evening, we saw the release of the NFP and average wages data from the US. The NFP showed a slightly less than expected number but the average wages rose by a lot which helped to keep the dollar supported. This was in turn reflected in the stock markets as well and that is the reason why the yen has been weakening today morning as there is a general risk on mood today. This mood is likely to continue for the rest of the day as we are likely to see the dollar continue to strengthen, especially in the absence of any major economic news from any part of the world today. The USDJPY and the euro are the ones that are likely to lead the rally in different directions. Take care and trade safe !

 
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