Morning Report: 07.15 London
- This morning, the dollar index is on the back foot, furthering yesterday’s gains after the US federal reserve signalled a slowing of the rate cut cycle.
- The yen has capitalised on the move, driving the USD/JPY lower, towards the lower rung of the trading range.
- Dollar pairs are generally on the rise, especially the AUD/USD and EUR/USD.
- The notable exception is the British pound which is lagging after the UK Chancellor Osborne warned of tricky times ahead. The EUR/GBP extended its winning run as a result.
Coming up today:
- Coming up today we have the Swiss rate decision, with no change expected.
- European CPI follows at 10.00.
- We have further central bank action at 12.00, with the MOC statement. Again, no change is expected.
- Following this we have Philly Fed manufacturing index, unemployment claims and current account released alongside Canadian wholesale sales at 12.30.
- We then get JOLTS job openings at 14.00.
Trade Idea:
- The Australian dollar is enjoying a general strengthening in commodity prices, while the pound has been pressured by hints of weakness in the UK economy.
- The GBP/AUD has been a consistent loser of late and this could be a trend worth riding.
- A good way to play this is a LOWER trade predicting that the GBP/AUD will close below 1.8500 in 14 days for a potential return of 180%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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