Feb 2nd 2016: Aussie Weakens after In Line RBA

• This morning, the Australian dollar is biggest mover despite a generally in-line meeting from the Reserve Bank of Australia which opted to keep rates on hold at 2.00%. Of greater concern might be the weakening in commodities.

• The yen pairs are heading lower investors seek out safe havens. Last night US manufacturing data came in below expectations, potentially sending that second US rate hike further into the future.

• The dollar weakened on the same data, but is rallying this morning, potentially as a result of the strong results from Alphabet, Google’s parent company that will see it overtake Apple as the world’s largest company.

• The euro remains range bound despite yesterday’s rally.

Coming up today: 

• Today we UK construction PMI at 09.30 with a small drop expected.
• European unemployment rates follow at 10.00.

Trade Idea: 

• The euro and pound remain closely connected with the price rebounding off support. Such lines have been fickle friends in recent years so we could see a break from here.

• A good way to play this is a LOWER trade predicting that the EUR/GBP closes below 0.7400 in 35 days for a potential return of 305%.

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