The new year has seen a largely positive tone to it as far as the stock market goes as we have had some big rises early on in the week. Bonds are nearing highs also making government bonds a very unattractive proposition in terms of return, which maybe explains why we have had such a bid to the market. This coupled with some good data out of the states with ADP beating by 150k jobs and Non farm right now coming out with 200k jobs created against 155k expectations and a fall in the unemployment rate.
The Euro however is coming under intense pressure as persistent worries over the state of Europe has pushed the Eur/Usd to 1.27 and against sterling its trading at a 16 month low of 0.82.
I can only see the Euro going down further as debt yields remain high, and it is almost certainly going to be the main story again this year.
Non farm as expected caused the market to pop up temporarily before now fading all its gains and now trading closer to flat, as much of this has been priced in I feel.
Think next week we will get more players back in the market hopefully we will see more volume and substance, and to make for some good trades.
Below is a look at the FTSE over the past few weeks:
A look at the Bund:
And finally a look at the Eur/USD:
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