European Open: Trader Continue to Sell the Yen

A slight risk-on mood was apparent during overnight trade, as safe-havens JPY and CHF moved lower whilst indices, yields and AUD traded higher.

AUD/JPY is currently the strongest forex pair

Asian Indices:

  • Australia's ASX 200 index fell by -29.9 points (-0.41%) and currently trades at 7,290.20
  • Japan's Nikkei 225 index has risen by 404.86 points (1.44%) and currently trades at 28,453.80
  • Hong Kong's Hang Seng index has risen by 550.09 points (2.21%) and currently trades at 25,387.94


UK and Europe:

  • UK's FTSE 100 futures are currently down -4.5 points (-0.06%), the cash market is currently estimated to open at 7,091.05
  • Euro STOXX 50 futures are currently down -4.5 points (-0.11%), the cash market is currently estimated to open at 4,068.79
  • Germany's DAX futures are currently down -14 points (-0.09%), the cash market is currently estimated to open at 15,192.13


US Futures:

  • DJI futures are currently down -8.65 points (-0.02%)
  • S&P 500 futures are currently down -62.25 points (-0.42%)
  • Nasdaq 100 futures are currently down -10.5 points (-0.24%)



It was a mostly positive mood overnight across Asian equity markets. The Nikkei rallied for a third day as new daily COVID-19 cases fell to a 1-year low, with a weaker yen also helping the domestic market. Chinese equity markets were the strongest performers as they tracked yields higher, although the ASX 200 fell -0.4% as tech stocks tracked the Nasdaq 100 lower from Friday. That said, futures markets for European and US indices currently point to a softer open.


FTSE 350: Market Internals


FTSE 350: 4062.44 (0.25%) 08 October 2021

  • 160 (45.58%) stocks advanced and 179 (51.00%) declined
  • 8 stocks rose to a new 52-week high, 4 fell to new lows
  • 51.57% of stocks closed above their 200-day average
  • 84.05% of stocks closed above their 50-day average
  • 12.54% of stocks closed above their 20-day average



  • + 6.64%-John Wood Group PLC(WG.L)
  • + 5.97%-Baltic Classifieds Group PLC(BCG.L)
  • + 5.49%-Harbour Energy PLC(HBR.L)



  • ·-15.48%-Tui AG(TUIT.L)
  • ·-4.58%-Unite Group PLC(UTG.L)
  • ·-3.26%-AVEVA Group PLC(AVV.L)




It’s a relatively quiet economic calendar today with the US celebrating Columbus day. Norwegian inflation data is scheduled for 07:00 which sees CPI and PPI data released. At 08:00 Turkey release employment data. ECB board member Philip Lane speaks at 13:00, and FOMC member Charles Evans speaks at 23:00.

GBP and AUD are currently the strongest major currencies, whilst safe-haven’s JPY and CHF are the weakest. AUD/JPY is a top performing pair and within its third consecutive bullish session, after breaking above 82.0 for the first time since July.

The US dollar index (DXY) is coiling in a potential continuation pattern on the daily chart. Even if momentum is to instead break lower from the current consolidation, the fact it is coiling suggests volatility is about to pick up.

USD/JPY broke above the February 2020 high, so we are now looking for prices to hold above 112.22 and continue its trend higher.


EUR/AUD is probing last week’s low after a trendline break on Thursday. Momentum points lower on the daily chart although prices are now within a sideways consolidation, so the bias is for a break of 1.5780 support for a run towards the 1.2664 – 1.5690 support zone. Whilst the broken trendline may provide resistance we can also expect some noise around it, so our bias remains bearish below 1.5900.



Gold failed to hold onto gains with its break above 1770 resistance on Friday, leaving a bearish pinbar on the daily chart. Should we see a decent break of last week’s low then it suggests it could be headed for the 1271 lows.

That said, silver appears to be the more compelling short opportunity given it trades in a bearish channel and has twice failed to hold onto intraday breaks above $23. A break beneath 22.20 assumes bearish continuation.

Oil prices continued higher overnight, with WTI touching a near-7-year high and on track for its 8th consecutive bullish session. Yet brent prices were a touch lower after failing to retest Friday’s high. Currently at a 3-year high the next major resistance level for bulls to test is the 2018 high of 86.69.


Up Next (Times in BST)


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account