• This morning, markets have reacted to the passing of the Greek debt vote in the Greek parliament with a broad attitude of difference. Of greater importance was German GDP coming in below expectations. The euro has dropped slightly this morning after a fairly solid week.
• Broader markets are mixed, with the S&P 500 on the rise and the dollar index still mixed after Chinese currency fluctuations put in doubt the prospect of a US rate hike.
• Meanwhile oil prices have dropped to their lowest level since 2009, with an intraday low below $40 yesterday.
Coming up today:
• Coming up today, we have Europe wide final GDP and CPI figures.
• From 13.30, we have Canadian manufacturing sales released alongside US PPI figures.
• Following this we have US capacity utilisation rate at 14.15 and industrial production. Preliminary UoM consumer sentiment rounds off the week at 15.00.
Trade Idea:
The USD/CAD is experiencing its first negative week in many sessions (as for Friday morning), but support for the Canadian dollar still lags other dollar pairs such as the EUR/USD and GBP/USD. Indeed, Friday saw another rally for the USD/CAD as oil prices drifted lower.
Perhaps more than any Western economy, Canada is feeling the bite of lower oil prices. The Canadian oil sands are an expensive way to extract black gold and only make economic sense when oil prices are sustained at levels more than double current levels. While the US dollar has been hit by yuan volatility and a rate hike possibly delayed, a Canadian rate hike is still nowhere on the horizon.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Greek Govt Passes Vote – Markets Shrug
Morning Report: 07.00 London
• This morning, markets have reacted to the passing of the Greek debt vote in the Greek parliament with a broad attitude of difference. Of greater importance was German GDP coming in below expectations. The euro has dropped slightly this morning after a fairly solid week.
• Broader markets are mixed, with the S&P 500 on the rise and the dollar index still mixed after Chinese currency fluctuations put in doubt the prospect of a US rate hike.
• Meanwhile oil prices have dropped to their lowest level since 2009, with an intraday low below $40 yesterday.
Coming up today:
• Coming up today, we have Europe wide final GDP and CPI figures.
• From 13.30, we have Canadian manufacturing sales released alongside US PPI figures.
• Following this we have US capacity utilisation rate at 14.15 and industrial production. Preliminary UoM consumer sentiment rounds off the week at 15.00.
Trade Idea:
The USD/CAD is experiencing its first negative week in many sessions (as for Friday morning), but support for the Canadian dollar still lags other dollar pairs such as the EUR/USD and GBP/USD. Indeed, Friday saw another rally for the USD/CAD as oil prices drifted lower.
Perhaps more than any Western economy, Canada is feeling the bite of lower oil prices. The Canadian oil sands are an expensive way to extract black gold and only make economic sense when oil prices are sustained at levels more than double current levels. While the US dollar has been hit by yuan volatility and a rate hike possibly delayed, a Canadian rate hike is still nowhere on the horizon.
A good way to play this is a HIGHER trade predicting that the USD/CAD will close above 1.3200 in 35 days time for a potential return of 179%. Or put another way, betting that the USD/CAD will close above 1.3200 on the 18th of September could return £27.89 for every £10 put at risk.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
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