• You can take your pick for an explanation of Thursday’s sell off – A reaction to the prospect of higher interest rates, fear over Portugal’s BES or Argentina’s default? Whatever the reason, there’s no denying the sentiment – The S&P 500 slumped with its biggest sell off since April of this year. There has been some additional follow on selling so far this morning as the June lows come into sight.
• Away from equities, FX markets saw less volatility, as the dollar index continues its steady path higher.
• Despite this dollar strength, gold and silver are managing to push higher.
• The USD/JPY nudged higher again, mainly due to the strong dollar, rather than any particular yen weakness.
• The EUR/USD continues to suffer as the mirror to the dollar index.
Coming up today:
• Coming up today we have UK manufacturing PMI.
• The days main ticket is US Non Farm Payrolls, with the unemployment rate also released at the same time. ISM manufacturing PMI follows at 15.00.
Trade Idea:
• Yesterday’s major sell off in Portugal’s BES is widely believed to be a specific event – a bad apple rather than evidence of systemic risk. Still, in the current environment, it’s hardly going to help matters and with the dollar showing no signs of turning back, there could be more downside for the EUR/USD.
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. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Fixed odds trading may incur losses as well as gains.
Wobble Gains Momentum
Morning Report: 09.00 London
• You can take your pick for an explanation of Thursday’s sell off – A reaction to the prospect of higher interest rates, fear over Portugal’s BES or Argentina’s default? Whatever the reason, there’s no denying the sentiment – The S&P 500 slumped with its biggest sell off since April of this year. There has been some additional follow on selling so far this morning as the June lows come into sight.
• Away from equities, FX markets saw less volatility, as the dollar index continues its steady path higher.
• Despite this dollar strength, gold and silver are managing to push higher.
• The USD/JPY nudged higher again, mainly due to the strong dollar, rather than any particular yen weakness.
• The EUR/USD continues to suffer as the mirror to the dollar index.
Coming up today:
• Coming up today we have UK manufacturing PMI.
• The days main ticket is US Non Farm Payrolls, with the unemployment rate also released at the same time. ISM manufacturing PMI follows at 15.00.
Trade Idea:
• Yesterday’s major sell off in Portugal’s BES is widely believed to be a specific event – a bad apple rather than evidence of systemic risk. Still, in the current environment, it’s hardly going to help matters and with the dollar showing no signs of turning back, there could be more downside for the EUR/USD.
A good way to play this could be a LOWER trade predicting that the EUR/USD closes below 1.3350 in 4 days time for a potential return of 169%.
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. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Fixed odds trading may incur losses as well as gains.
Summary:
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