Aussie Rallies on China GDP Boost

Morning Report: 07.00 London

• This morning, the Australian dollar is leading markets higher after Chinese GDP came in above estimates at 7%.

• The euro is still wobbly after news leaked of the IMF demanding a deeper debt haircut if it is to be involved with future bailout programs.

• The British pound is in on the rise after hints from the Bank of England that a rate rise is coming quicker than previously thought.

• The S&P 500 continues to rally above the 200 and 100 period moving averages, with the dollar index dipping slightly.

                           
                                  
Coming up today:

• Coming up today we have UK average earnings at 09.30, with claimant count change released at the same time.

• From 13.30 we switch to North America with Canadian manufacturing sales and US PPI released alongside the US Empire state manufacturing index.

• Following this, we get US Capacity utilisation rate and industrial production at 14.15.

• At 15.00 the Bank of Canada release their latest rate statement, while Fed Chair Yellen Testifies at the same time.

• Further Eurogroup meetings run throughout the day.
                           
Trade Idea:

British and Canadian interest rates are heading in different directions, especially as the prolonged slump in oil prices hurts the Canuck economy.

                                  
             
A good way to play this situation is a HIGHER trade on the GBP/CAD predicting that the pair will close above 2.0000 in 14 days time could return 104% if successful.

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