Oil Dribbles Below $40

Morning Report: 06.30 London

• This morning, the dollar has regained some of its previous poise, though like the USD/JPY, remains largely range bound.
            

• Oil prices remain under pressure as OPEC inaction combines with slowing demand in China.

• Commodity currencies are performing relatively well though, the Australian dollar is down slightly, while the New Zealand dollar is showing some encouraging consistency.

• The British pound remains pressured however after yesterday’s MPC meeting failed to provide strong hints at a rate hike.

Coming up today:

• Today we have US core retail sales at 13.30, released alongside PPI. This is followed by preliminary UoM consumer sentiment.

• MPC member Weale speaks at 15.35.

Trade Idea:

• There is no relief for the Canadian dollar, as oil prices sink further. The USD/CAD has been rising steadily and could have further to go.
                      

A good way to play this is a HIGHER trade predicting that the USD/CAD will close above 1.37000 in four days for a potential return of 157%.                            

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