Morning Report: 07.00 London
- After heavy selling pressure on Friday, the dollar pairs are on the front foot this morning. Major pairs such as the EUR/USD have gapped higher this morning as the week starts with new optimism.
- There is a general sense of optimism as we start the week. The USD/JPY is on the rise, while the US dollar index dips slightly.
- The yen pairs are generally trading higher in line with the USD/JPY.
- The Australian dollar is recovering after rejecting the highs on Friday.
Coming up today:
- Coming up today, we have UK MPC member Weale speaking at 09.15.
- Canadian foreign security purchases follow at 13.30.
Trade Idea:
- The EUR/USD suffered heavy selling on Friday as Brexit fears spread and markets absorbed the wider impact of the Nice terror attacks.
- Eurozone growth remains troubled and the British exit from the EU will not help. In the longer term, there could be a further downside from here, especially in the current risk-averse environment.
- A good way to play this is a LOWER trade predicting that the EUR/USD will close below 1.0925 in 50 days time for a potential return of 214%.
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