BetOnMarkets Daily Market Report (22nd May)

Has the dollar rally gone too far?

Morning Report: 08.00 London

• This morning markets are generally quiet ahead of a busy economic calendar today. Markets are generally positive, with stock markets nudging back towards the highs, while the dollar index is on the rise.



Click here to view full-sized image

Click here to view full-sized image

• The main movers are the AUD/USD and NZD/USD, though this move seems to be more about US dollar strength than Aussie dollar weakness.



Click here to view full-sized image



Click here to view full-sized image

• Gold is performing well so far today after another sell off yesterday.

Click here to view full-sized image



Coming up today:

• Coming up today we have the release of the minutes from the last MPC meeting with UK retail sales out at the same time. Public sector net borrowing is expected to drop to 7.6bn. At 11 we have CPI industrial order expectations, with MPC member Beam speaking at 12.

• From 13.30, we switch to North America, with Canadian core retail sales at 13.30, followed by US existing home sales at 15.00 and Fed Chairman Bernanke testifying at the same time. FOMC meeting minutes are released at 19.00.

Bet Idea:

• The Canadian dollar has been in trouble of late, with the USD/CAD rising back to the Febru
ary highs. The Loonie has been repelled from those highs in the past few times of asking and with the dollar index looking a tad over bought, there could be some more downside here.

Click here to view full-sized image

A good way to play this could be a LOWER trade predicting that the USD/CAD closes below 1.0250 in 5 days time for a potential return of 105%.

Click here to view full-sized image


This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.

Summary: 

Click here to view full-sized image