Forex spread betting: Buy GBP JPY

Last Updated on Wednesday, 21 July 2010 07:45 Wednesday, 21 July 2010 07:43

Written by Sam Coventry

If you spread bet on technical indicators then GBP JPY could present an opportunity.

Delta Index, the spread betting firm, have this morning suggested spread betting participants should take a look at the GBP JPY forex pair.

Delta say a MACD & Triple Moving Average Crossover has been identified, this signals a Buy at 13354. Delta suggest placing a stop at 13325 while initially targeting 13383.

Forex markets latest

One question forex spread betters will be asking is whether the Euro Dollar rate rising too quickly?

With the results of the European banking stress tests due some commentators are asking if the Euro Dollar rate is rising too quickly.

The Euro Dollar exchange rate is unchanged on a daily basis with 1 EUR = 1.2895 USD at 8:20 AM in London.

The Pound Dollar exchange rate is 0.23% higher with 1 GBP = 1.5301 USD.

In a morning foreign exchange market note online forex trading providers Forex Yard ask whether the EUR USD is rising too quickly?

With the results of European banking stress tests due soon analysts are wondering if the strong gains in Euro exchange rates are overblown.

"The EUR has experienced irregular optimistic movements these past several weeks. Despite a string of negative news releases, the 16-nation single currency continues to make gains on rising risk appetite.

"Some of the largest gains have been made against the US Dollar and Japanese Yen. The EUR USD has risen steadily in value and currently trades at 1.2900, while the EUR GBP sits at a present value of 0.8445," say Forex Yard.

A number of analysts have been concerned about the EUR's sudden surge since there is little to support such movement.

European debt concerns remain, growth continues to lag behind expectations, and the bank stress test results are due this Friday which may reveal just how bad off the region is financially.

For the moment, anyways, the EUR continues to enjoy the spotlight while the market awaits the results of the recent stress tests. Risk appetite in the market has surged from a wave of optimism.