• This morning, stock markets have negative bias, but are generally stable after heavy selling from Thursday. The dollar index has shifted back on to the offensive though pushing higher again after moving back above the moving average yesterday. It’s seems this dollar rally may still have legs yet.
• Gold and silver are the big movers this morning, as the precious metals react to the returning dollar strength and general poor performance of commodities at the moment.
• The dollar pairs are struggling, with the USD/CAD in particular shooting higher as the Canadian dollar weakens.
• The Aussie is holding up reasonably well though the AUD/JPY is jittery at the lows.
• There was some big selling on the GBP/USD yesterday on below expectation inflation data which pushed a rate hike further into the distance.
Coming up today:
• Coming up today we have UK CPI at 09.30, with the headline inflation measure expected to drop to 1.4%. HPI, RPI and PPI are released at the same time, with drops expected in each. HPI levels are expected to rise however.
• At 10.00, we have the latest German ZEW economic sentiment data, with industrial production and EU wide economic sentiment released at the same time. Trade Idea:
Gold looks to be running a little hot in the short term, which could lead to some downside in the coming days.
Markets Stable as Dollar Returns
Morning Report: 09.00 London
• This morning, stock markets have negative bias, but are generally stable after heavy selling from Thursday. The dollar index has shifted back on to the offensive though pushing higher again after moving back above the moving average yesterday. It’s seems this dollar rally may still have legs yet.
• Gold and silver are the big movers this morning, as the precious metals react to the returning dollar strength and general poor performance of commodities at the moment.
• The dollar pairs are struggling, with the USD/CAD in particular shooting higher as the Canadian dollar weakens.
• The Aussie is holding up reasonably well though the AUD/JPY is jittery at the lows.
• There was some big selling on the GBP/USD yesterday on below expectation inflation data which pushed a rate hike further into the distance.
Coming up today:
• Coming up today we have UK CPI at 09.30, with the headline inflation measure expected to drop to 1.4%. HPI, RPI and PPI are released at the same time, with drops expected in each. HPI levels are expected to rise however.
• At 10.00, we have the latest German ZEW economic sentiment data, with industrial production and EU wide economic sentiment released at the same time.
Trade Idea:
Gold looks to be running a little hot in the short term, which could lead to some downside in the coming days.
A good way to play this is a LOWER trade predicting that gold will close below $1225 in 3 days time for a potential return of 180%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
Summary:
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