Morning Report: 08.30 London
- This morning, financial markets have started on the back foot after Chinese exports slowed much faster than expected. Year on year growth was just 1% compared to the expected 8%. With China acting as a growth buffer against the Eurozone problems, this could be bad news for the global economy. It’s especially bad news for the Australian dollar as Australia has been a key supplier of raw materials to the emerging powerhouse.
- The AUD/JPY is down 0.85%, with the AUD/USD down 0.63%.
- Stock markets are down in early trading, with the dollar index up by around 0.2%.
- The yen is top dog today as traders switch this perceived safe harbour. The USD/JPY is down 0.21%.
- The yen’s strength is helping to push the major yen pairs down, with the GBP/JPY and EUR/JPY down 0.42%.
- Gold is also suffering, with the precious metal down 0.38%.
- This morning, we have UK PPI input figures at 09.30, with a 1.4% gain expected.
- Canadian employment change follows at 13.30.
- US import prices are released at 13.30, with the Federal budget balance at 19.00.
- The USD/CAD is trading higher today as the US dollar wins over its Canadian neighbour. The Canadian dollar’s strength has been impressive in the past few weeks. The US dollar has been strong, but the Canadian dollar has in some ways been even stronger.
- This morning’s China slowdown fear could rebalance things a little and a HIGHER trade could a good way to play this.
- A HIGHER trade predicting that the USD/CAD closes above 1.0000 in 7 days could return 231%.