Fed Fears Hit Markets

Morning Report: 09.00 London

• Despite stronger than expected Chinese exports, financial markets are on the back foot this morning, chiefly as a result of fears that the Federal reserve will turn off the taps too quickly. The S&P 500 is extending Friday’s sell off, while the dollar index is back below its moving average.
                                                                    

                               

                               
                                                                                                                                                                   
• It’s not all bad news though as the Australian and New Zealand dollars rally on the back of the Chinese data.

                               

                               

• The euro is out-performing so far ahead of today’s eurogroup meetings.

                               

                               

• The pound is on the back foot however, especially against the yen with the GBP/JPY off by 0.21%.

                               

Coming up today:

• Coming up today we have the Eurogroup meetings running all day.It is also a public holiday in Canada and the • US so volatility may be increased.

Trade Idea:

The USD/JPY is slipping lower again as the dollar index loses its halo.

                               

A good way to play this is a LOWER trade predicting that USD/JPY closes below 107.25 in 7 days time for a potential return of 117%.

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

Summary: