Dollar Slipping Lower On Taper Talk

Morning Report: 08:00 London

• This morning, the dollar index continues to dip after the FOMC confirmed it would continue to taper its asset purchase program as the economy picks up. This has been bad news for the US dollar, but so far has had a mild positive effect on stock markets.
         

• Elsewhere, commodities continue to drift lower, with silver edging closer to a decent overbought level.
                                                                                                                                                                     

• The dollar pairs are generally higher as the dollar index backs off, with the NZD/USD the leader of the pack.

                             
                             
                             

                             

Coming up today:

• It was a bank holiday across much of Asian this morning and we have the same situation across much of continental Europe.

• Coming up today, we have UK manufacturing PMI and net lending to individuals at 09.30.

• From 13.30, Fed chair Yellen speaks alongside the release of US unemployment claims.

• ISM manufacturing PMI follows at 15.00.

Trade Idea:

• Silver is heading towards overbought levels, and is slap bang on support levels. Ideally we’d be in a more overbought situation here, but there’s enough potential for a half strength trade now with scope for re-entry on another half if we head lower.

                             

A HIGHER trade predicting silver closes above $19.25 in 7 days time could return 143% if successful. 

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

Summary: