Morning Report: 07.45 London
- This morning, the Australian dollar is on the rise after the release of the minutes from the last RBA meeting which showed that rates are unlikely to drop further in the short term.
- The dollar index is on the back foot, forced lower by a powerful move higher by oil prices and a general flight from safe harbours following news of Buffets investment in Apple.
- The yen pairs have a positive bias though despite the weaker dollar.
- In Europe, the pound continues to dominate, with the EUR/ GBP dipping lower and the GBP/ JPY climbing.
Coming up today:
- Coming up today we have UK inflation at 09.30, starting with CPI and RPI with no change expected.
- From 13.30 we switch to North America for Canadian manufacturing sales, released alongside US building permits, CPI and housing starts.
- Following this, we have Capacity utilisation rate and industrial production at 14.15.
Trade Idea:
- Is Brexit uncertainty overrated? Quite possibly given the out performance (or lack of collapse) seen by the British pound in recent weeks. Polls still don’t provide a clear prediction of the outcome yen the EUR/ GBP is nipping lower and the GBP/ JPY on the rise.
- The GBP/ JPY is worth attention after the large collapse at the end of April which still could be overhauled.
- A good way to play this is a HIGHER trade predicting that the GBP/ JPY will close above 160.00 in 21 days for a potential return of 129%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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