Morning Report: 08.15 London
• Typical of most Monday's we're seeing a nondescript start to the trading week.
• Traders are rightly keeping their powder dry ahead of a very busy week for announcements from US companies. Although these announcements will have only a secondary effect on forex markets, there will be an impact nonetheless.
• So far today the main theme is strength in the US dollar as it recovers slightly from two week losing streak.
• The EUR/USD is down 0.29%, while the USD/CHF & USD/JPY are both down by a similar measure.
• The day's stand out performer is the AUD/JPY which is up by 0.34% on a tentative recovery in gold prices.
Bet Idea:
• Does today's pull back in the EUR/USD represent a short term end to the recent rally, or a buying opportunity?
• With so many major US companies announcing earning this week, this may be trying to predict the unpredictable, but if the EUR/USD had a slight bias it is of pull-backs being shallow when they come against the trend.
This trade is perhaps best left until the end of the day, but a trade idea would be to predict that the EUR/USD is above 1.3610 by the close of play on the 25th tomorrow. If successful, this could potentially return 114%.
Summary:
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