Markets Post Fresh Highs As Commodities Slip

Morning Report: 09.00 London

• Markets are pausing this morning after the S&P 500 posted a fresh closing high last night, while the dollar index continues its advance.                                                                                                             

                               
                                                                                                                                                                   
                               

• The strong dollar is impacting on currency movements as both gold and silver suffer heavy losses this morning.

                               
       
                               

• Elsewhere, the Australian dollar is slipping lower after Chinese manufacturing PMI came in below estimates.

                               

                                    

• The dollar dominance is also translating into higher levels for the yen pairs, especially the USD/JPY as money flows from the yen into the dollar.

                                                     
                                           
Coming up today:

• We’ve a busy day ahead today, starting with French manufacturing PMI at 08.00, followed by German and European data at 08.30 and 09.00 respectively.

• US unemployment claims follow at 13.30, with flash manufacturing PMI at 14.45 and Philly Fed manufacturing at 15.00.


Trade Idea:

• Silver’s recent bear run shows no signs of stopping and has so far not had an exhaustive drop lower that can often signal a turning point.

A good way to play this is a LOWER trade predicting that silver will close below $19.25 in 5 days time for a potential return of 132%.

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