Morning Report: 06.15 London
- This morning, the dollar pressure has continued, adding to the sizeable post-Fed losses seen this week. While the dollar has suffered, oil prices have risen to their highest in many months – nudging firmly above the $40 marker.
- The release of the minutes from the last BoJ meeting have had minimal impact thus far, though there were some indications of the strong yen having a negative impact.
- The pound enjoyed a strong day yesterday despite the Bank of England keeping rates on hold. A rate hike is still more likely than not in the next two years and that’s the message that markets appear to have taken from yesterday.
- Other dollar pairs have had a positive session, with commodity related currencies such as the Aussie dollar performing well.
Coming up today:
- At midday we get Canadian core CPI and retail sales.
- This is followed by FOMC member Dudley speaking at 13.00.
- US preliminary UoM consumer sentiment follows at 14.00.
- From 15.00 we have further Fed speak with FOMC member Rosengren speaking at 15.00 and Bullard speaking at 18.00.
Trade Idea:
- Oil prices continue to show some stability, while the US dollar weakens on a consistent basis.
- The USD/ CAD slipped lower again yesterday and there could be more downside to come.
- A good way to play this is a LOWER trade predicting that the USD/ CAD will close below 1.2900 in 10 days time for a potential return of 177%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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