Fed Looks On The Bright Side

Morning Report: 08:45 London

• The Fed certainly didn’t disappoint yesterday, with a statement that financial markets liked. A lot! The S&P 500 regained its bull run and is now within reach of the 2,000 level.                                             

• The meeting did have a slight dilutive effect on the dollar which looks to be turning lower after a period of chop. This in turn is helping the dollar pairs regain their up trend, with the AUD/USD up 0.24% and the USD/CAD down 0.22%.

                             
                  
                             

• The EUR/USD is out performing the pound after the Bank of England voting patterns provided no surprises.

                             
                                                                                                                                                       
                              

• Gold and silver are back on the up with the precious metal quickly shrugging off the mini slump this week.

                             

                             
                             
Coming up today:

• Coming up today we have UK retail sales at 09.30. Following this we have UK CBI industrial order expectations and MPC member McCafferty speaking at 12.30.

• From 13.30, we switch to the US with unemployment claims, followed by Philly Fed manufacturing at 15.00.

Trade Idea:

• Gold continues to recover after the mini slump and with the fed offering up a dovish meeting, there could be more pressure on the dollar…And therefore more upside for gold.

                             

A good way to play this is a HIGHER trade predicting that gold will close above $1290 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: