Pound Weakens Ahead of MPC

Morning Report: 06.30 London

• This morning, the British pound is on the back foot for the second day in a row ahead of today’s Bank of England MPC rate statement. No change is expected again, but as ever, it is the forward guidance which may excite traders today.

• The euro is slipping back as well against the dollar, but is out-performing the pound after heavy selling yesterday.

• The dollar itself is on the rise, while the USD/JPY pauses after two days of gains.

• The biggest mover is the NZD/USD which is falling by over 1% despite strong Australian employment data. The Aussie remains unchanged.

Coming up today:

• Coming up today we have European CPI at 10.00.

• This is followed by the MPC decision at 12.00.

• Following this we get Canadian NHPI, US CPI and unemployment claims.

• FOMC member Powell speaks at 15.00.

Trade Idea:

• The AUD/USD is holding at the highs and after a strong set of employment figures, there could be further upside from there.

                     

A good way to play this is HIGHER trade predicting that the AUD/USD will close above 0.7700 in 14 days for a potential return of 141%.

                         
                                                         

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