Euro Shrugs Off BES Concerns

Morning Report: 08.45 London

• Markets are sleeping this morning as the market heavyweights eye their summer holidays in the Hamptons. The S&P 500 is making a small recovery after yesterday’s volatility, but movement across the board is slight.
                                                                                                               

                               

• Yesterday’s storm already appears to be passing with the euro nudging higher. The troubles at Portugal’s Banco Espirito Santo are severe, but do increasingly appear to be down to isolated problems at the bank rather than a symptom of another widespread banking crisis on the horizon.

• The EUR/GBP is up another 0.07% with the EUR/JPY rising.

                                                                                                                                                                                                              

• Today’s biggest mover is the USD/CAD which is down 0.17% as the Canadian dollar keeps up the pressure on its southern neighbour.

                               

Coming up today:

• Coming up today we have Canadian employment change released alongside the latest unemployment figures.

Trade Idea:

• The EUR/JPY tested support levels once again yesterday and that test was passed. With the BES mini crisis starting to pass, there could be further upside for the pair from here.

                               

A good way to play this is a HIGHER trade predicting that the EUR/JPY will close above 138.25 for a potential return of 154%.

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

Summary: