Morning Report: 08.30 London
- The two main themes this morning are continued yen weakness and the impact of the credit ratings agencies ‘negative outlook’ being applied to the UK.
- The USD/ JPY is up 0.45%, testing the 2012 highs following downbeat comments from this morning’s Bank Of Japan press conference and an expansion of its asset buying program. Industrial production also came in below estimates.
- The rating agency’s negative outlook for the UK has hit the headlines, but the pound is relatively unaffected. The EUR/ GBP is up 0.05% while the GBP/ JPY is up 0.18%.
- The higher yielding commodity currencies are falling the most this morning with the AUD/ USD down 0.38%. Gold is on a similar path and down by the same amount.
Coming up today:
- Coming up today we have UK inflation data at 09.30 with CPI expected to drop significantly to 3.6% and RPI expected to drop to 4.1%.
- German ZEW Economic Sentiment follows at 10.00 with a reduction in negative sentument expected.
- US core retail sales follow at 13.30 with a jump to +0.6% expected.
Bet Idea:
- The USD/ JPY is heading for the 78.00 buffer zone that has proven so troublesome in the past.
- Since November, the pair has made little progress past this level, so it could be a good opportunity for a LOWER trade.
- A LOWER trade on the USD/ JPY predicting that the pair closes below 78.00 in 6 days time could return 108%.
- You can find direct links to this trade idea here and here.
Summary:
Tags: audusd, binary options, EUR/ USD, eurchf, Euro, eurusd, fixed odds, Fixed odds strategies, Gold, swiss franc, usdjpy, yen
