Morning Report: 08.15 London
- After falling back yesterday, the Japanese yen is once again the currency of choice for investors as risk taking takes a back seat. The USD/JPY has swung back lower, down 0.28%.
- The yen’s strength is exaggerating downwards moves on other yen pairs, particularly the GBP/JPY which is down 0.53% as the Bank of England prepares to downgrade its UK growth forecasts.
- The dollar pairs also have a negative bias, with the NZD/USD and GBP/USD the standout losers so far today.
- Gold is also struggling, with the precious metal down by around 0.28%.
Coming up today:
- This morning, the Bank of England are expected to downgrade their UK growth forecasts while they release the latest inflation report at the same time.
- German industrial production is released at 11.00with a drop to 0.8% expected. There is a German 10 year bond auction running throughout the day.
- In the afternoon we have US preliminary non farm productivity and unit labour costs at 13.30.
Bet Idea:
- The USD/JPY has recently been trading in a fairly consistent pattern of an up day followed by a down day. Looking back further, this has been a familiar trait for the pair when it is between trending periods. There may be a limit to the downside thanks to the watchful Bank of Japan, but there may still be some value in a bearish trade today.
- A good way to play this might be a ONE TOUCH trade predicting that the USD/JPY TOUCHES 77.90 in 2 days time for as potential return of 132%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
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