• This morning, stock markets are backing off after another powerful rallying from the 100 day moving average yesterday. Meanwhile the dollar index is indifferent, but still holding at the highs.
• The big mover is the British pound as it backs off ahead of Wednesday budget and MPC press conference. Traders are unloading positions ahead of big news rather than selling in expectation of anything significantly negative. The biggest moves comes against the euro as the latter firms up.
• The euro itself is on the rise ahead of this morning’s ZEW numbers.
• The NZD/USD meanwhile has risen for a second day, but at a lesser pace than the euro.
Coming up today: • Coming up today we have German ZEW economic sentiment at 10.00, alongside final European CPI.
• From 12.30 we switch to the US with US building permits and Canadian manufacturing sales.
Trade Idea:
• The euro is on the rise against the pound this morning, but this is appears to be more based on traders looking to reduce their exposure to UK budget uncertainty.
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.
Pound Weak Ahead Of Budget
Morning Report: 09.00 London
• This morning, stock markets are backing off after another powerful rallying from the 100 day moving average yesterday. Meanwhile the dollar index is indifferent, but still holding at the highs.
• The big mover is the British pound as it backs off ahead of Wednesday budget and MPC press conference. Traders are unloading positions ahead of big news rather than selling in expectation of anything significantly negative. The biggest moves comes against the euro as the latter firms up.
• The euro itself is on the rise ahead of this morning’s ZEW numbers.
• The NZD/USD meanwhile has risen for a second day, but at a lesser pace than the euro.
Coming up today:
• Coming up today we have German ZEW economic sentiment at 10.00, alongside final European CPI.
• From 12.30 we switch to the US with US building permits and Canadian manufacturing sales.
Trade Idea:
• The euro is on the rise against the pound this morning, but this is appears to be more based on traders looking to reduce their exposure to UK budget uncertainty.
• Absent of any strong economic fundamental reasons for the move, we could see a reversal for the EUR/ GBP back in line with the longer term trend.
A good way to play this is a LOWER trade predicting that the EUR/GBP will close below 0.7125 in 7 days time for a potential return of 143%.
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.
Summary:
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