Aug 16th 2016: Yen Rallies as Asian Stocks Soar

• This morning, the yen is surging, pushing all yen pairs lower as Asian markets take their gains for the year to around 10%.

• The EUR/JPY is holding up relatively well, with the EUR/USD pushing higher.

• The dollar index is suffering as money flows away from the dollar and into the yen.

• The Australian and New Zealand dollars have been the big winners, helped by the release of the RBA meeting minutes.

• Another major commodity currency – the Canadian dollar has been performing particularly well, while oil prices have been recovering rapidly this week.

Coming up today: 

• Coming up today, we have UK inflation data at 09.30, starting with CPI and RPI.
• Following this, we have German ZEW economic sentiment and at 13.30 we have US building permits and CPI, alongside housing starts.
• Canadian manufacturing sales are released at the same time.
• Following this, we get US capacity utilisation rate and industrial production at 14.15.

Trade Idea: 

• Pressure remain around the Australian dollar, but greater pressure is being placed on the US dollar, helping the AUD/USD to rise higher.

• With further upside on the cards, a good way to play this is a HIGHER trade predicting that the AUD/USD will close above 0.7750 in 21 days for a potential return of 127%.

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