China Beats Estimates, But It’s Not Enough

Morning Report: 09.00 London

• This morning, financial markets seem determined to look at the glass half empty after Chinese GDP and industrial production figures came in above estimates. These figures still put China as having it’s slowest year since 1990 though, which seems to be the fixation point for traders. The S&P 500 is reversing yesterday’s gains, while the dollar index is following suit.
                                                                    

                               

                               
                                                                                                                                                                   
• The yen is the big winner this morning as traders seek out safe havens. The USD/JPY is off by 0.44%, with the GBP/JPY down by 0.43%.

                               

                               
                         
• The New Zealand and Australian dollars are holding up ok, helped by the retreating dollar. China beating estimates may be helping these regional pairs to out perform.

                               

                               

 • Gold and silver are riding higher on safe haven demand, also helped by the retreating dollar.

                                
                       
Coming up today:

• Coming up today we have UK public sector net borrowing figures at 09.30.

• This is followed by US existing home sales at 15.00.

Trade Idea:

• The British pound is under performing its peers this morning and a return to the downside pressure seen recently could be on the cards.

                               

A good way to play this is a LOWER trade predicting that the GBP/JPY will close below 171.75 in 7 days time for a potential return of 132%

                               

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

Summary: