July 26th 2016: Yen in Demand after Japanese Attack

• This morning, the Japanese yen is on the rise as traders seek out safe harbours. An attack on a care home has shaken up markets as so far, as Japan has remained immune from the sort of attacks plaguing the West. The attack does not appear to be ‘terror’ related, but there’s no doubting the spark of negative sentiment it has triggered in markets.

• The pound is one of the biggest sellers as major banks test the waters for negative interest rates. The EUR/ GBP is on the rise as a consequence.

• By contrast, the Australian and New Zealand dollars are out-performing so far.

• The US dollar has nipped back this morning as money flow switches to the yen.

• Coming up today we have US CB consumer confidence at 15.00, released alongside US new home sales.

Trade Idea: 

• Oil prices remain depressed, hurting the oil heavy Canadian dollar.

• The USD/ CAD is pulling back this morning and this could be a good opportunity to keep buying.
• A good way to play this is a HIGHER trade predicting that the USD/ CAD will close above 1.3250 in 14 days for a potential return of 131%

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