Markets Firm As Rally Holds

Morning Report: 08:45 London

• Markets have recovered after new Fed Chair Yellen’s difficult first week in the spotlight. Markets rallied into the evening and that sentiment is carrying over this morning.

• Stock markets look set for a second straight day of gains, while the dollar index is holding its recent bull run.                

• Commodities and commodity related currencies are pushing higher as global risk appetite improves. Gold us up 0.49%, with Silver up 0.39%.

                             
                             
• The Aussie is outpacing all other currencies with the exception of its neighbour the NZD/ USD.

                             
                         
• Yen pairs are seeing significant selling, with the British pound on the defensive in particular.

                                                      
                                                      
Coming up today:

• Coming up today, we have UK public sector net borrowing at 09.30.
• From 12.20 we have Canadian core CPI and retail sales.
• From 17.45 we have a stream of central bank speeches starting with the FOMC’s Fisher, then the UK’s Dale at 08.30 alongside the FOMC’s Kocherlakota and finally FOMC member Sein at 10.30.

Trade Idea:

• The EUR/ USD has been hit hard the last two days, but there could be more selling to come. The tables seem to be turning on the US dollar, while Europe still has a potential conflict on its borders.

                                 

A good way to play this is a LOWER trade predicting that the EUR/USD closes below 1.3750 in 4 days time for a potential return of 164%.

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

Summary: