Jan 15th, 2016: Dollar Rallies Ahead of Big Data Day

• This morning, markets are stable after steady gains on US Stock markets last night. The dollar is making gains again as investors continue to demand safe harbour.

• At the same time, the yen is back in demand, with the USD/ JPY slipping lower.

• After a brief rally, the Australasian pairs are on the back foot this morning.

• Meanwhile, the British pound is steady after the Bank of England produced no surprises in its MPC meeting yesterday.

Coming up today: 

• We start the day with UK credit conditions survey.
• We have an incredibly busy day in the US though, with retail sales, empire state manufacturing and PPI at 13.30. This is then followed by FOMC member Dudley speaking at 14.00. Capacity Utilisation and Industrial production follow at 14.00. Finally, we have preliminary UoM consumer sentiment at 15.00.

Trade Idea: 

• The GBP/ JPY’s slide has shown no sign of reversing, helped by the ongoing delay in UK interest rate hikes and the stronger yen.

• A good way to play this is a LOWER trade predicting that the GBP/ JPY will close below 168.50 in 25 days time for a potential return of 154%.

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