Morning Report: 08.30 London
- This morning, the dollar index is still suffering the consequences of below expectation Non Farm Payroll data from the US on Friday. NFP came in significantly below the expected +201k at +142k, while average earnings failed to grow at all. This adds another layer of complexity to the dance between the FOMC and markets, with the dollar continuing to slip lower as a possible US rate hike is pushed further into 2016.
- The dollar pairs have been the big winners, especially the EUR/ USD which is rallying again this morning.
- The Australian and New Zealand dollar demonstrated the interconnected nature of modern financial markets, where a US rate hike is thought to have a real impact on Chinese growth rates and therefore consumption of raw materials from the region. The NZD/ USD is up 0.45% this morning.
- The yen pairs are also on the rise, led by the GBP/ JPY which is up by 0.42%.
- Gold is holding the gains from last week’s rapid sell off.
Coming up today:
- This morning’s main highlight is UK services PMI at 09.30 with a small improvement expected.
- Beyond this we have UK services PMI at 09.30.
- This is followed by ISM non-manufacturing PMI at 15.00.
Trade Idea:
- The EUR/ USD is rallying again this morning, but the US interest rate soap opera no doubt has more twists and turns. As such, we could see more volatile trading.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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