Morning Report: 09.00 London
- This morning, markets are stable after a volatile session yesterday that saw the US dollar slump to its lowest level since August. Yesterday’s big measures all came in below expectations, with core retail sales down 0.3% and PPI down 0.5%. This data raises the stakes for a Fed that has already been flip-flopping on a 2015 rate hike. Now there has been another box ticked in the ‘delay rate hike’ debate.
- Even the rangebound USD/ JPY is showing signs of breaking down after going nowhere for months.
- The main dollar pairs saw large gains yesterday, with the pound outpacing the euro despite and increase in claimant count change data.
- The big winners are the NZD/ USD and the AUD/ USD – as ever a China proxy play. A rate hike delay helps keep the Chinese growth juggernaut rolling and therefore demand for Aussie commodities.
Coming up today:
- Coming up today, we have US CPI and unemployment claims released alongside empire state manufacturing from 13.30.
- Philly Fed manufacturing follows at 15.00, with FOMC member Dudley speaking at 15.30.
Trade Idea:
- The New Zealand dollar has hit the afterburners, but there could be more room for growth from here as the dollar unwinds.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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