Jan 13th, 2016: China Offers Stability with Strong Trade Balance

• This morning, markets are on a stable footing, following China’s release of better than expected trade balance data. The big winners in this have been the commodity currencies of the Australian and New Zealand dollars. The AUD/JPY is particular is rallying as the yen eases.

• The USD/JPY itself is rising for the third straight day as demand for safe harbours recedes somewhat.

• Dollar pairs are mixed as dollar demand eases up. The pound is making a small recovery, while the euro is nipping back.

Coming up today: 

• Today’s only release of note is US crude oil inventories at 15.30.

Trade Idea: 

• The GBP/USD is on the rise this morning, but the longer term momentum is clear to see. The GBP/USD sunk lower yesterday after UK manufacturing sunk well below expectations to register its second straight significant monthly loss.

• A good way to play this is a LOWER trade predicting that the GBP/USD will close below 1.4400 in 21 days for a potential return of 138%.

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