Pound Dips On Inflation Drop

Morning Report: 09.00 London

• This morning, the S&P 500 has continued to slip lower, though trading continues to be volatile. Meanwhile, the dollar index is still holding at the highs.                                                                                              

                               
                                                                                                                                                                   
                               

• The British pound is seeing the biggest movement ahead of today’s inflation data. Expectations are for a drop in CPI to 1.5%. The pound is dropping as a result, with the EUR/GBP showing the pound’s under performance best and the GBP/JPY peeling back from the highs.

                               

• The AUD/USD continues to back peddle after the release of the minutes from the last RBA meeting.

                               

• Commodities are performing better though with both Silver and gold nudging higher.

                                
                                                                                                                         


                             

                                                                                                                                                                   
Coming up today:

• Coming up today we have UK CPI, RPI and PPI released at 09.30.

• Following this we have German ZEW economic sentiment with European data released at the same
time.

• From 13.30 we switch to North America with Canadian manufacturing sales and US PPI at 13.30.

Trade Idea:

• The GBP/JPY is drifting lower again today and we could see the same trend until the referendum results on Thursday.

As such a LOWER trade could be the best way to play this. A LOWER trade predicting that the GBP/JPY will close below 173.00 in 1 days time could return 128%.

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Summary: