Markets Mixed As Rally Falters

Morning Report: 09.00 London

• Markets staged a recovery of sorts yesterday, lifting off the highs. Yet US equities are still over 7% below the market peak struck just a few weeks ago, with European stocks slipping even further. The dollar index is making small gains this morning as this too is buffeted by lost confidence in the US economy.
                                                                    

                               

                               
                                                                                                                                                                   
• The yen pairs are the main movers this morning, helped by increased demand for safe haven assets. The GBP/JPY is particularly weak, extending its recent down run.

                               

                               

• The European dollar pairs of the GBP/USD and EUR/USD are also suffering as the eurozone periphery problems return to bite.

                               

                               
                        
Coming up today:

• Coming up today we have Canadian core CPI at 13.30, released alongside US building permits and housing starts. Fed Chair Yellen also speaks during the same slot.

• Following this we have prelim UoM Consumer Sentiment.

Trade Idea:

• The GBP/JPY volatility is marked for is particular weakness in the last two days following below expectation inflation data this week in the UK.

                               

Further downside could be on the cards and a good way to play this is a LOWER trade predicting that the GBP/JPY closes BELOW 169.75 in 5 days time for a potential return of 200%.

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

Summary: