• This morning, the Australian dollar (and other dollar pairs) have continued their divergence against the S&P 500. This is noteworthy because until recent times, the Aussie was seen as a risk proxy that would rise as stock markets rose and vice versa. However, recently, this relationship has become a strong negative correlation with the Aussie heading in one direction and the S&P 500 heading in the other.
• Today, the Aussie is heading lower once again, while stocks are on the rise.
• The yen pairs have halted their magnificent ascent from yesterday.
Coming up today:
• Coming up today we have German Ifo business climate at 09.00, followed by ECB president Draghi speaking at 09.30.
• Canada takes centre stage from Midday, with core CPI and retail sales from 13.30..
Trade Idea:
• The GBP/JPY stormed higher yesterday as the yen sunk back. As popular as the pound is right now, the move seems something of an overreaction and there could be a rebound here.
This Daily Market Report is written by Dave Evans, Professional Trader. This is presented as an idea to stimulate binary option trading ideas and is not a financial advice.
The curious case of Aussie divergence
Morning Report: 08.45 London
• This morning, the Australian dollar (and other dollar pairs) have continued their divergence against the S&P 500. This is noteworthy because until recent times, the Aussie was seen as a risk proxy that would rise as stock markets rose and vice versa. However, recently, this relationship has become a strong negative correlation with the Aussie heading in one direction and the S&P 500 heading in the other.
• Today, the Aussie is heading lower once again, while stocks are on the rise.
• The yen pairs have halted their magnificent ascent from yesterday.
Coming up today:
• Coming up today we have German Ifo business climate at 09.00, followed by ECB president Draghi speaking at 09.30.
• Canada takes centre stage from Midday, with core CPI and retail sales from 13.30..
Trade Idea:
• The GBP/JPY stormed higher yesterday as the yen sunk back. As popular as the pound is right now, the move seems something of an overreaction and there could be a rebound here.
• A LOWER trade predicting that the GBP/ JPY closes lower than 163.25 on Monday could return 160% if successful.
This Daily Market Report is written by Dave Evans, Professional Trader. This is presented as an idea to stimulate binary option trading ideas and is not a financial advice.
Summary:
Email [email protected] or skype me at bomaffiliates-karen
Related Posts: