• This morning, markets are stable after a volatile session yesterday that saw the US dollar slump to its lowest level since August. Yesterday’s big measures all came in below expectations, with core retail sales down 0.3% and PPI down 0.5%. This data raises the stakes for a Fed that has already been flip-flopping on a 2015 rate hike. Now there has been another box ticked in the ‘delay rate hike’ debate.
• Even the rangebound USD/JPY is showing signs of breaking down after going nowhere for months.
• The main dollar pairs saw large gains yesterday, with the pound outpacing the euro despite and increase in claimant count change data.
• The big winners are the NZD/USD and the AUD/USD – as ever a China proxy play. A rate hike delay helps keep the Chinese growth juggernaut rolling and therefore demand for Aussie commodities.
Coming up today:
• Coming up today, we have US CPI and unemployment claims released alongside empire state manufacturing from 13.30.
• Philly Fed manufacturing follows at 15.00, with FOMC member Dudley speaking at 15.30. Trade Idea:
• The New Zealand dollar has hit the afterburners, but there could be more room for growth from here as the dollar unwinds.
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.
Another Tick in the Box for Fed Delay
Morning Report: 07.30 London
• This morning, markets are stable after a volatile session yesterday that saw the US dollar slump to its lowest level since August. Yesterday’s big measures all came in below expectations, with core retail sales down 0.3% and PPI down 0.5%. This data raises the stakes for a Fed that has already been flip-flopping on a 2015 rate hike. Now there has been another box ticked in the ‘delay rate hike’ debate.
• Even the rangebound USD/JPY is showing signs of breaking down after going nowhere for months.
• The main dollar pairs saw large gains yesterday, with the pound outpacing the euro despite and increase in claimant count change data.
• The big winners are the NZD/USD and the AUD/USD – as ever a China proxy play. A rate hike delay helps keep the Chinese growth juggernaut rolling and therefore demand for Aussie commodities.
Coming up today:
• Coming up today, we have US CPI and unemployment claims released alongside empire state manufacturing from 13.30.
• Philly Fed manufacturing follows at 15.00, with FOMC member Dudley speaking at 15.30.
Trade Idea:
• The New Zealand dollar has hit the afterburners, but there could be more room for growth from here as the dollar unwinds.
A good way to play this is a HIGHER trade predicting that the NZD/USD will close ABOVE 0.6900 in 14 days for a potential return of 112%.
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.
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