Morning Report: 06.30 London
- This morning, markets are stable once again mainly thanks to the intervention of ECB President Mario Draghi. The prospect of a fresh round of European stimulus was enough to calm stock markets and send the US dollar and Japanese yen into reverse.
- At the same time, oil prices rebounded on comments from Saudi Arabia that the current slump in prices was “irrational”.
- This in turned helped commodity pairs such as the Australian and New Zealand dollar.
- The main loser from all this was the euro, as it stands directly in the path of Draghi’s stimulus plan.
Coming up today:
- ECB Draghi speaks at 07.45.
- This is followed by flash manufacturing PMI at 08.00, German data at 08.30 and Europe wide data at 09.00. Services PMI is released at the same time.
- From 09.30 we switch to the UK for retail sales and public sector net borrowing.
- This is followed by Canadian CPI at 13.30.
Trade Idea:
- The euro and US dollar appear to be drawing closer, with Draghi’s intervention having a relatively muted impact.
- The EUR/USD has been stuck in a range and this could continue as the two currencies diverge.
- A good way to play this is an IN/OUT trade predicting that the EUR/USD closes within a high of 1.1000 and a low of 1.0700 in 21 days time for a potential return of 102%
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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