Morning Report: 06.45 London
- Chinese stock market Circuit Breakers were triggered again on this morning as the renminbi slides to its biggest fall since the surprise devaluation in August. The move is increasing demand for the region’s dominant currency – the yen, with the major yen pairs falling again today.
- The move is so far yet to knock the dollar index from its dominant position, a situation helped by oil prices plunging to their lowest levels since 2004.
- Australasian currencies continue to catch the Chinese cold, with the AUD/JPY experiencing the heaviest selling. Poor Australian building approvals data has not helped the situation.
- By contrast, the euro continues to out perform its peers such as the British pound by some margin this week.
- The Chinese sell off is helping gold to lift itself outside of the recent tight trading range.
Coming up today:
- Coming up today, we have German factory orders at 07.00, released alongside retail sales at the same time.
- Then at 08.00, we get more insights into the overheating UK housing market with Halifax HPI.
- At 10.00, we have the EU wide unemployment rate.
- From 13.25, we switch to North America for BOC Poloz’s speech.
- This is followed by US unemployment claims at 13.30.
- Canadian Ivey PMI follows at 15.00.
Trade Idea:
- With China enduring a volatile 2016 so far, the Japanese yen is in big demand.
- The USD/JPY is one of the big losers this year along with other yen pairs following suit.
- A good way to play this is a LOWER trade predicting that the USD/JPY will close below 117.00 in 20 days time for a potential return of 202%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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