• This morning, US markets are still struggling after the S&P 500 endured a heavy session last night that saw the benchmark index hit a six month low and turn negative for 2015. You can take your pick on the reason for the decline, with fears of a Chinese slowdown top of the list.
• At the same time, the US dollar index is declining as expectations for a US rate hike shuffle slightly further into the future.
• The big winner has been the euro which has continued to climb despite the fresh elections called in Greece yesterday.
• The yen has picked up some of the dollar’s slack, with further losses for the USD/JPY this morning.
• On a negative note, the Australian dollar is one currency unable to capitalise on the weak US dollar, with a China slowdown reducing demand for its supply of raw commodities. This morning’s poor flash manufacturing PMI data hasn’t helped matters.
• Gold continues to shine however, helped by the soft dollar this week.
Coming up today:
• Coming up today, we have German flash manufacturing PMI, followed by eurozone data.
• This is followed by UK public sector net borrowing at 09.30.
• Canadian CPI and retail sales dominate the afternoon at 13.30.
• This is followed by US flash manufacturing PMI at 14.45.
Trade Idea:
• The best of a bad bunch right now might actually be the euro. 2014 saw some sustained selling pressure for the single currency, but the euro has avoided any dramatic collapses throughout the turmoil of 2015. Whether true or not, it seems the market perception is that the euro is insulated against Greece. European interest rates are going nowhere in the short or medium term, but at the same time, US rates might just be nudging a few months into the future.
The euro as shown it can fly in the face of genuine economic and political concerns and this could be enough to support it over the next month or so.
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. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
China Slowdown Sends Markets Reeling
Morning Report: 07.00 London
• This morning, US markets are still struggling after the S&P 500 endured a heavy session last night that saw the benchmark index hit a six month low and turn negative for 2015. You can take your pick on the reason for the decline, with fears of a Chinese slowdown top of the list.
• At the same time, the US dollar index is declining as expectations for a US rate hike shuffle slightly further into the future.
• The big winner has been the euro which has continued to climb despite the fresh elections called in Greece yesterday.
• The yen has picked up some of the dollar’s slack, with further losses for the USD/JPY this morning.
• On a negative note, the Australian dollar is one currency unable to capitalise on the weak US dollar, with a China slowdown reducing demand for its supply of raw commodities. This morning’s poor flash manufacturing PMI data hasn’t helped matters.
• Gold continues to shine however, helped by the soft dollar this week.
Coming up today:
• Coming up today, we have German flash manufacturing PMI, followed by eurozone data.
• This is followed by UK public sector net borrowing at 09.30.
• Canadian CPI and retail sales dominate the afternoon at 13.30.
• This is followed by US flash manufacturing PMI at 14.45.
Trade Idea:
• The best of a bad bunch right now might actually be the euro. 2014 saw some sustained selling pressure for the single currency, but the euro has avoided any dramatic collapses throughout the turmoil of 2015. Whether true or not, it seems the market perception is that the euro is insulated against Greece. European interest rates are going nowhere in the short or medium term, but at the same time, US rates might just be nudging a few months into the future.
The euro as shown it can fly in the face of genuine economic and political concerns and this could be enough to support it over the next month or so.
A good way to play this is a HIGHER trade predicting that the EUR/USD will close above 1.1400 in the next 35 days for a potential return of 159%. Or put another way, betting that the EUR/USD will rise and close above 1.1400 on September 25th could return £25.89 for every £10 put at risk.
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. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
Email [email protected] or skype me at bomaffiliates-karen
Related Posts: