Morning Report: 08.15 London
- This morning, the yen pairs are firmly on the back foot after the Bank of Japan opted to unleash a fresh wave of stimulus. Negative rates were kept on hold, but it has been enough to push the USD/ JPY and other pairs ever lower.
- The US dollar index is slipping back from the highs, despite the continued drift lower in oil prices.
- Elsewhere, the dollar pairs are quiet, with the EUR/ USD holding the gains made this week.
Coming up today:
- Coming up today we have Spanish Flash CPI at 08.00, with Spanish Flash GDP at the same time.
- Following this, we have UK net lending to individuals data at 09.30.
- Then at 10.00, we get CPI flash estimate and preliminary flash GDP.
- Then at 13.30, we switch to North America for US and Canadian GDP data. At the same time we get the US employment cost index and Canadian RMPI.
- Chicago PMI follows at 14.45, with revised UoM consumer sentiment at 15.00.
- At 21.00, we get the EBA bank stress test results.
Trade Idea:
- The euro has been fairly quiet while all the attention turns to the British pound and Brexit.
- The eurozone still has multiple problems to contend with though, not least with the Italian banking sector in dire straits. The bank stress test results tonight could provide further downside stimulus.
- A good way to play this is a LOWER trade predicting that the EUR/ USD will close below 1.1050 in 14 days for a potential return of 160%.
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