Morning Report: 06.30 London
- Commodity currencies remain under pressure this morning as oil prices dipped below $40, while other commodities feel the pinch. The Australian dollar has halted its recent bull run, while the Canadian dollar continues to struggle. Better than expected Chinese CPI helped lift the gloom slightly.
- The euro is holding up relatively well though as the US dollar backs off slightly.
- The USD/JPY remains in a tight trading range, with a wide divergence in the performance of individual yen pairs.
Coming up today:
- It’s a relatively light day for data this morning, with the main highlight this evening being the RBNZ rate statement due at 20.00. A 0.25% cut is expected.
Trade Idea:
- The ongoing oil price cut is having an impact on the UK economy in the form of oil producing regions and associated manufacturing. Then there is also the undoubted impact on inflation.
- Both of these may be enough to force the Bank of England to stay its hand in raising rates a little longer.
- A good way to play this may be a HIGHER trade predicting that the GBP/JPY will close below 183.50 in 50 days for a potential return of 133%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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