Morning Report: 06.45 London
- This morning, the euro remains under pressure after a weekend of further revelations about the VW scandal with some commentators warning that the fallout could be more significant than Enron.
- The euro is also is also on the back foot as US rate watchers re-adjust to the idea of a rate hike in 2015. After Yellen’s speech last week, it does indeed seem that a rate hike may be back on for December. Stock markets took a ‘glass half full’ view of this, putting in a positive session on Friday. US Dollar index:
- Elsewhere, the Australian dollar has a negative bias, while the USD/JPY remains stuck in an ugly trading range.
Coming up today:
- First up today, we have a number of central bankers speaking at a conference in Paris from 08.00 to 13.30. There are further speeches in the US at 18.30 and 20.00. Analysts will be looking for the words within the words.
- Aside from this we have US personal spending data at 13.30, released alongside core PCE price index. Pending new homes follow at 15.00.
Trade Idea:
- The USD/JPY is stuck in an ugly trading range, but this is likely to resolve itself in the coming weeks as the US inches towards a rate hike. A downside breakout seems the most likely, but you can hedge your bets with an IN/OUT trade.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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