Morning Report: 07.15 London
- Markets are thankfully quiet this morning after a weekend of relative calm from the UK. The Conservative government looks to be settling into a leadership contest, while chancellor Osborne outlines his 5 point post-Brexit plan which includes cutting corporation tax to 15%. There is still much uncertainty, but markets appear more comfortable with the unknowns.The pound is largely unchanged this morning.
- The euro continues to capitalise on the Brexit result, holding on to gains made in recent weeks.
- The USD/JPY has nudged up as risk appetite increases slightly, with the US dollar slipping lower, investors are no longer needing such safe havens.
- The Australian dollar continues to hold up well despite a hung parliament following recent elections.
Coming up today:
- Coming up today we have UK construction PMI at 09.30.
- We also have a US bank holiday today which may reduce volatility.
Trade Idea:
- This morning, Silver has broken $21 for the first time since July 2014, outstripping its sister commodity gold by some margin recently.
- However, there are signs of stability across politics and global markets which may reduce demand for the precious metal. In addition, silver has a history of at least pausing after rapid rallies such as this.
- A good way to play this is a LOWER trade predicting that silver will close below $19.5 in 25 days for a potential return of 202%.
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