Markets Climb Wall Of Worry

Morning Report: 08:30 London

• It is often said that bull markets climb a wall of money and if this is the case, it augurs well for the state of the current market. The S&P 500 is inching higher while commodities and commodity related currency push on despite poor Chinese data and ongoing tensions in Ukraine.

• The move is no doubt helped by the continuing slump in the US dollar index, a move that is helping to inflate the dollar pairs and currencies. Gold is pushing towards six month highs while the Australian and New Zealand dollars show strong momentum.

• Elsewhere, the dollar pairs are generally strong thanks to the weak dollar, while the EUR/USD continues to gain ground.

                       

Coming up today:
• Coming up today we have US retail sales and unemployment claims from 12.30. Following this we have a number of mid tier economic data points including business inventories at 14.00 and Federal budget balance at 18.00.

Trade Idea:
• The dollar index has been falling steadily, but looking at the longer term charts, we’re setting right above support levels that could see a pause.

• This coupled with Gold’s over bought status could see a reversal in the precious metal over the coming weeks.

                     

A good way to play this could be a LOWER trade predicting that gold will close below $1350 in 12 days time for a potential return of 237%.

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

Summary: