Jan 26th, 2016: Did the Fed Jump the Gun?

• This morning, markets are stable after another big fall on US stock markets last night. The S&P 500 dropped over 1.5% amid increasing speculation that that Fed may have jumped the gun in raising rates in its most recent meeting. The dollar index is still in demand after a strong showing yesterday, despite a slight dip this morning.

• The yen is easing back into its previous groove, with the USD/JPY heading back towards the lows alongside other yen pairs.

• Oil prices slipped again yesterday, while commodity currencies such as the AUD/USD also slipped back towards the lows.

• The euro enjoyed a positive session, but the single currency remains locked in a fairly ugly trading range.

Coming up today: 

• BOE governor Carney is speaking at 10.45.
• This is followed by US CB Confidence at 15.00.

Trade Idea: 

•  The EUR/JPY is stuck in a range just like the EUR/USD and this could continue for coming weeks as markets weigh up US rate hikes and jitters over China.

• An In/ Out trade predicting that the EUR/JPY closes between a high of 129.00 and a low of 126.00 in 14 days time could return 101% if successful.

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