CCY: GBPEUR as Alternative Trade Strategy

The major stock indices delayed reaction among traders and investors have again surprised the market with a triple digit decline on a Monday start of trading activity. Media coverage of a rate hike has been the main-stream of coverage which we do think is primary been priced-in. However, secular forces are still at work where a probable bull trap has been setup in this decline. A Tug of war between bulls and bears are struggling to dominate the market place.

The GBPEUR cross rate as an "alternative trade" aside from the fact, other than using it as a counter-trade strategy; the GBPEUR cross rate has a better daily swap rate compared to having a negative swap on the single currency is a small bonus for traders.

CCY: GBPEUR as Alternative Trade

NOT JUST FOREX: SPDR SP500 ETF

SPDR SP500 ETF

In reference to our previous market view, the USD correction and its mild manner behavior have provided some ideal momentum built-in from the past couple of trading days. While a  reasonable increase in the open interest reflected that this has driven a rally and some breath of fresh positioning at the start of the trading week with the stock market indices.

As mentioned, whenever the closing prices maintains their current levels from last week's closing the overall picture of the trend remains to be intact. Today's move have proven to be true and correct. But contrary to this outlook, we do have some traders and analyst seeing the opposite.  As the NFP #'s would be another risk event that would be focused on Friday.

Additional Info: SGDJPY Cross Rate

NOT JUST FOREX: SPDR SP500 ETF