Correction or reality starting to set in? 

Morning Report: 08:30 London

• Yesterday saw stock markets and the main ‘risk-on’ currency pairs fall back despite some positive economic news from the US. Europe led the way here as Eastern nations saw their growth slow more than expected and French & Italian economies flat lining. This is all something of a reality check for the EU politicians who have claimed the worst is over, while unemployment remains high in many regions. Profit taking is also a factor after the S&P 500 hit 500, but there are also legitimate concerns acting on markets right now.
         

                             

• The AUD/JPY was one of the hardest hit yesterday as investors shifted away from risk assets. The pair is down again this morning, while the NZD/USD follows suit.                                                                                                                                                 

                                                        
• The AUD/JPY move is exaggerated by the USD/JPY backing off on increased yen speculation – a move also impacting the EUR/JPY.

                             

• The pound continues to out perform however, rallying yesterday and holding its ground this morning.

                                                                                                                                                                      
Coming up today:

• Coming up today we have US S&P/CS Composite HPI at 14.00, followed by US CB consumer confidence at 15.00.

Trade Idea:

• The eurozone storm never really passed and while attention return to problems in the periphery, there could be more downside for the EUR/JPY.

                             

A good way to play this is a LOWER trade predicting that the EUR/JPY closes below 139.00 in 5 days time could return 127% if successful.

This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary: