Betfair Official Blog

RBS results see reported boom in 'Crisis? What Crisis?' newspaper headlines

Daily View - 28th February

Yesterday was a classic in today's trading environments with the FTSE falling over 100 points in morning and early-afternoon action, only to reverse virtually the whole move and close just ten pips lower on the day. Early indications this morning are for a weaker open on the back of minor falls in Japan and late weakness in the US, but on the plus side, the RBS results will give the banking sector yet another boost after coming in well above analysts expectations. The number crunchers will however want to see more information on the progress of the ABN acquisition before hanging out the bunting just yet. The call on the FTSE is 6046-6047, which is disappointing as the eventual close at 6076 was above the resistance/support level mentioned in yesterdays comment at 6065.

The Dollar is attempting something of a small bounce today, with the Euro retreating from highs of 1.5145 to the current level of 1.5090-1.5092, but the Pound is suffering rather more and is now at all-time lows versus the Euro at 0.763. Sterling against the Dollar has given up 200 pips from the highs of yesterday, (oddly enough the same highs as the last rally in late January,) and is now back down at 1.9770-1.9773. The resistance at 1.9750 which acted to hold back the initial rally on Tuesday may well act as support today, but if we close under here this evening then we will be back in the 1.9390-1.9750 range that has dominated trading for the last month.

Commodities have paused for breath this morning (as the dollar regains some composure), but the pressure is still there and it remains a brave trader who bets on any significant fall back in prices. Gold had a few attempts at falling below 952 yesterday (which all failed), so short-term punters may be watching to see if we break below.