Morning Report: 08.30
• Markets are quiet after yesterday's big rally on US markets which saw the Dow Jones perform a complete U turn and reverse recent losses. The Dow has been making a lot of noise, but ultimately going nowhere recently.
• Markets are also quiet with US traders hitting the road for the long Thanksgiving weekend. Although markets are open tomorrow, it is expected that many traders will have taken the opportunity for an extended break with family. According to MarketSci, the day after Thanksgiving has a positive seasonality bias.
• Forex markets are quiet with little movement to speak of save for weakness in the Swiss franc following employment data which came in much worse than expected. The USD/CHF is up 0.23% and the EUR/CHF up 0.35%.
• UK inflation will come under focus today with the MPC inflation hearing and governor King speaking from 10 AM today.
Trade idea:
• One interesting theme to note is the dollar currency pairs trading around parity e.g. 1 Australian dollar = 1 US dollar.
• The AUD/USD was recently above parity, but failed to hold it, same with the USD/CAD. The USD/CHF has been beyond parity for some time, but is coming back up to test the level will it follow the trend set by the other pairs?
• There does appear to be some resistance at 1.0000, so perhaps it will hold for now and this morning's Swiss weakness is an opportunity to make a bet in the other direction.
USD/CHF trade idea : Try a LOWER bet predicting that the USD/CHF will be below 0.9975 in the next 4 days could return 102% if successful over the next 4 days.
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