Markets Retreat Into Their Shell


Morning Report: 07.00 London

• After a positive response yesterday, markets have retreated back into their shell, with ‘risk-off’ currencies in favour. The British pound is on the back foot, but so far holding the gains made yesterday. This comes after David Cameron’s speech in Europe last night which pointed to further uncertainty in forthcoming negotiations.

                    

                    

                    

                  
• Elsewhere, the yen is soaking up currency inflows. The GBP/JPY is selling off heavily, but the EUR/JPY and USD/JPY are not far behind.

                   
        

                                        
                   
        

The US dollar index is back on the rise as investors look for safer homes for their cash.
               
                   

Elsewhere, gold is nudging back higher.
               
                   

Coming up today:

• Coming up today we have Spanish Flash CPI at 08.00.
• Following this we have UK net lending to individuals at 09.30.
• From 13.30, we switch to North America for US core PCE price index and personal spending, followed    by pending home sales at 15.00 and crude oil inventories at 15.30.
• Then at 15.30, we have crude oil inventories.
• We also have the day two of the EU economic summit.

Trade Idea:

• The pound has failed to roar in response to Friday’s sell-off and while in the medium term, the pound may well recover, in the short term we are likely to see further volatility in both directions.
   
                       
                                    
A good way to play this is a LOWER trade predicting that the GBP/USD will close below 1.3200 in 14 days for a potential return of 172%.


Disclaimer
: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.

Trade Forex, Commodities, Stocks and more, trade CFDs on the Plus 500 CFD trading platform! *CFD Service. 80.6% lose money - Register a real money account here and get trading right away.