Iron Ore Prices Pressure Aussie 

Morning Report: 08:30 London

• This morning, softer iron ore prices are putting pressure on an already struggling Australian dollar. To add insult to injury, consumer sentiment dropped by its largest amount for 12 months. The AUD/JPY is down 0.23%, with related pairs down by a similar margin.         

                                                                                                                                                                          

                                                        
• Stock markets are nudging higher, but still remain volatile.

                             

• The yen is showing further strength, forcing the USD/JPY lower after the BOJ held back from further monetary stimulus.

• Back in Europe, the pound continues to dominate the euro as rate hike speculate continues to drift through news wires. 

                             
                                                                                                                                                        
Coming up today:

• Today we start with European current account data at 09.00.

• This is followed by the release of the voting patterns from the last MPC meeting. No surprises are expected. Retail sales are released at the same time – 09.30.

• The day’s main  highlight is the release of the minutes from the last FOMC meeting at 19.00.

Trade Idea:

• Interest rate speculation may have dipped slightly last week, but the prospect of a rate hike is never far away for the pound.

• This could mean further downside for the EUR/GBP as the eurozone is in no position to follow suit.

                             

A LOWER trade predicting that the EUR/GBP will close below 0.8100 in 14 days time could return 204%.

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

Summary: