Morning Report: 08.30 London
• This morning the US dollar is the dominant currency with big gains against the antipodean currencies Australian and New Zealand dollars. The AUD/USD and NZD/USD are down over 0.75%.
• The pound showed relative strength yesterday, and is falling by a lesser amount once again today GBP/USD down 0.21% with the EUR/USD falling by 0.41%.
• The troubles in Egypt are helping gold to withstand the strength in the US dollar to hold are current levels.
• Last night US stock markets closed near the highs of the day as traders managed to push markets higher following a weak open for second day in a row. Futures and indicating a weak opening once again, will traders be able to push markets higher once again?
Coming up today
• Coming up today we have UK PPI Input at 09.30 which is expected to come in lower than last month at +1.3%.
• At 13.30 we have Trade balance figures from the US and Canada with increased deficit expected for both.
• At 14.55 we have US consumer sentiment figures with a slight increase on the cards.
Bet Idea
• It's been hard to bet against the down trend in the USD/JPY with counter trend rallies reversing before a meaningful trend sets in.
• The yen continues to weaken with the USD/JPY rising to the upper consolidation point.
• The question this time is whether the USD/JPY will reverse the build up of strength once again, or whether this recovery will finally gain momentum.
• The dollar index has been building strength this week and while its not exactly roaring just yet, there is enough momentum to see at least a short term pop this time potentially.
One way to play this is a HIGHER trade predicting that the USD/JPY will be higher than 84.00 this time next week (Friday 18th). If successful, this could return 157%.
Summary:
0 comments:
Post a Comment