Apr 4th 2016: Another Aussie Rate Cut?

• This morning, the Australian dollar is on the back foot after a poor set of retail sales fueled speculation of another rate cut.

• The NZD/USD remains volatile with a negative bias in sympathy.

• Meanwhile, the dollar index remains relatively unchanged, while the USD/JPY drops lower for the second straight day after a generally positive set of employment figures on Friday.

• The pound remains the sick man of Europe in comparison to the euro and then to other currencies. Friday’s below par manufacturing PMI added to the recent collection of sub-par economic data.

Coming up today: 

• Coming up today we have Spanish unemployment change at 08.00.
• This is followed by UK construction PMI at 09.30.
• European unemployment data is released at 10.00.
• From 15.00, we have US factory orders.

Trade Idea: 

• The wind is  blowing firmly against the pound and although the euro is far from faultless, we could see further EUR/GBP strength from here.

• A good way to play this is a HIGHER trade predicting that the EUR/GBP will close above 0.8150 in 35 days could return 248% if successful.

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