Morning Report: 08.30 London
• Last night US markets suffered their heaviest single day sell off since January 28th with the Dow Jones closing down 1.44% and the wider S&P 500 down over 2.00%. Things are looking a bit more positive this morning and as happens so often after big drops, a rebound is setting in.
• Currency markets are displaying a similar rebound in general appetite for risk taking with the US dollar down by at least 0.33% against most other currencies.
• The EUR/USD has bounced strongly off yesterday's low, bouncing by over 200 pips.
• The AUD/USD and GBP/USD are also pushing higher, with both up over 0.45%. The AUD/USD is finding support at the parity line once again.
• The two other 'safe haven' plays of the Swiss franc and Japanese yen are higher against the US dollar, but generally weaker against other currencies. The EUR/CHF is up 0.33% and the AUD/JPY up 0.31%.
Coming up today:
• The morning's main announcement is the release of the minutes from the last MPC meeting. The minutes are expected to show an increase in votes for a rate hike from 2 to 3.
• At 3PM we have US existing home sales with a slight drop to 5.27 expected.
Bet Idea:
• The EUR/CHF is rallying for the first meaningful time since the top around 10 days ago.
• After yesterday's out sized move, today's rally may not be huge, but with the euro gaining confidence across the board, the EUR/CHF may put more distance between current levels and support at 1.2775.
One way to play this may be a No Touch trade predicting that the EUR/CHF won't touch 1.2770 at any point in the next 5 days. This could return 123% if successful.
Summary:
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