Morning Report: 06.45 London
- Markets are relatively quiet this morning after Chinese manufacturing data came in roughly in line with expectations. The US dollar appears to be the big winner so far as traders arrest some of the decline seen over the last week or so.
- The move can also be seen on the USD/JPY as the yen continues to reel after last week’s surprise BOJ decision for rates to turn negative. Most yen pairs are unchanged, though the likes of the EUR/JPY and GBP/JPY are nudging higher.
- Gold looks to be continuing its slow and steady recovery, with another push back towards the highs this morning.
Coming up today:
- We start the day with UK manufacturing PMI at 09.30, released alongside net lending to individuals. Slight falls are expected.
- Following this we have US ISM manufacturing PMI at 15.00.
- ECB president Draghi then speaks at 16.00, followed by FOMC member Fischer speaking at 18.00.
Trade Idea:
- The EUR/USD remains rangebound, with the euro unable to break away from the US dollar in either direction.
- This range has survived many shocks in 2016 and as such could well continue as we move into February.
- A good way to play this is an IN/OUT trade predicting that the EUR/USD will close within a high of 1.0950 and a low of 1.0750 in 10 days time for a potential return of 106%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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