Morning Report: 05.45 London
- In a sign of market’s increasing stability over the last week or so, the benchmark US stock market the S&P 500 turned positive for 2016 on Friday and held those gains yesterday. On forex markets, this is translating into a weaker US dollar and this is what we’re seeing this morning as the Greenback backs off slightly.
- Dollar pairs are enjoying small gains this morning, with the EUR/ USD on the rise and the GBP making back some of yesterday’s losses.
- Commodity currencies are performing well as general confidence returns, with the AUD/ USD nudging back towards the 2016 highs, while the NZD/ USD some way to go to recover from last week’s gap lower.
Coming up today:
- Coming up today we have a slew of European data with French flash manufacturing PMI and flash services PMI at 08.00. The corresponding German and European data follows at 08.30 and 09.00 respectively. German Ifo business climate is also released at 09.00.
- Following this we switch to the UK for CPI, PPI, public sector net borrowing and the latest RPI data.
- German ZEW economic sentiment then follows at 10.00.
- MPC member Forbes speaks at 13.30.
Trade Idea:
- With so much European data out today, it might be sensible to look elsewhere for a trade until the dust has settled.
- One pair still showing good momentum is the USD/ CAD as the weak US dollar meets a recovering Canadian dollar. With oil prices holding above $41, there could be more downside from here.
- A good way to play this is a LOWER trade predicting that the USD/ CAD will close below 1.3000 in 21 days for a potential return of 125%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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