Morning Report: 06.00 London
- The monetary policy gap between the US and EU is behind strong moves in the euro yesterday after ECB officials hinted at more assistance via quantitative easing, while US officials nudged a rate hike back on the agenda. Markets are quiet this morning though with the US dollar nipping back after two days of solid gains.
- Combined with the recall shock on VW cars, the euro has endured a difficult 24 hours, with the EUR/USD on the back foot since Friday.
- China continues to stalk markets and the prospect of a firmer US interest rate policy has been enough to knock a nascent Aussie and Kiwi recovery.
- Yen pairs remain range bound however.
Coming up today:
- We have UK public sector net borrowing at 09.30, with MPC Member Shafik speaking at 19.00
Trade Idea:
- The EUR/USD unwound much of its China-related surge from late August, but there has been a delayed pullback on the EUR/GBP. There is downside potential from here though as a euro rate hike remains a distant possibility.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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