Morning Report: 08.30 London
- It’s seems the bulls really do have the bit between their teeth at the moment. Despite lingering doubts are about Greece’s long term future, the dips have been shallow the mood generally positive. Last night US stock markets closed near break even with stock market futures trading 0.52% higher this morning.
- The euro is pushing higher, though lagging the commodity currencies after traders bought into the prospect of China helping the eurozone bail out Greece. Whether this will actually happen remains to be seen. The EUR/ USD is up 0.27%.
- The commodity currencies are once again on the charge with the AUD/ USD, AUD/ JPY & NZD/ USD all up by around 0.47%. The USD/ CAD is following suit, down 0.33% and trading below the 1.000 level (A down move on the USDCAD implies Canadian dollar strength).
- Gold is pushing higher after a couple of days of indifferent trading, up 0.43% this morning.
Coming up today:
- Coming up today we have UK unemployment count change at 09.30 which is expected to come in slightly higher. The unemployment rate is also expected to remain at 8.4%.
- At 10.30 Bank of England governor King speaks, with the BOE inflation report released at the same time.
- From 13.30 we have a number of important US economic announcements including US Empire state manufacturing index with TIC long term purchases released at 14.00.
- The minutes from the last FOMC meeting are released at 19.00.
Bet Idea:
- Last week the NZD/ USD was stuck within a trading range between 0.8400 and 0.8300. The lower range was broken on Friday and the upper range looks under threat this morning. Given the NZD/ USD nature is more typically trend following than being range bound, this upper breakout may have legs.
- A good way to play this might be a HIGHER trade predicting that the NZD/ USD closes above 0.8450 in 2 days time for a potential return of 219%.
- You can find direct links to this trade idea here and here.
Summary:
