Morning Report: 06.30 London
- This morning, Chinese growth levels have hit the headlines by coming in at their lowest levels since the 1990s. As ever though, the headlines do not tell half the story as the quarterly of 6.8% GDP was only 0.1% below analysts expectations, while industrial production came in at 5.9%, also just 0.1% below estimates. Far from dive bombing, markets seem slightly reassured by the news, with demand for reserve currencies on the wane. The dollar index is off the highs, while the USD/ JPY continues to reverse.
- With their close ties to China, the Australian and New Zealand dollar could have been hit hard today, but so far are putting in a strong performance, with the rising by AUD/ JPY rising 0.80%.
- The euro continues to under perform though, with the EUR/ GBP slipping lower for the seconds straight day.
Coming up today:
- Coming up today, we have UK CPI at 09.30, released alongside RPI and PPI output.
- Following this we have German ZEW economic sentiment, released alongside final CPI and EU wide CPI.
- From 13.30, we switch to Canada for Foreign Security Purchases.
- New Zealand CPI rounds off the day at 21.45.
Trade Idea:
- UK inflation is expected to remain at zero or near zero levels today as persistent low oil prices make their mark.
- The Bank of England will no doubt be eyeing global growth and take note of the Chinese (gradual slow down). As such, the next UK rate rise may drift even further into the future.
- A good way to play this is a LOWER trade predicting that the GBP/ USD closes below 1.4350 in 14 days time for a potential return of 149%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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