• This morning, financial markets are pausing for breath after a strong performance yesterday on the back of healthy earnings figures from the likes of Apple. The dollar index is also on the front foot, reversing Tuesday’s early slump.
• The big mover so far today is the British pound which is falling back after public sector net borrowing widened more than expected yesterday. Despite an improving economy, tax receipts are not coming in as expected for George Osbourne. The GBP/JPY is down 0.35%. with the GBP/USD off by 0.18%. The EUR/ GBP has also reversed its recent down trend.
• Elsewhere, the yen pairs have a negative bias as the the USD/JPY maintains the down side pressure.
Coming up today:
• Coming up today we have the minutes from the last MPC meeting at 09.30.
• This is followed at 13.30 with Canadian core retail sales and US CPI.
• At 15.00 we get the latest rate statement from the Bank of Canada, with no change expected. A press conference follows at 16.15. Trade Idea:
• The AUD/JPY has been caught in a trading zone since the start of the week, but this is unlikely to last long. A breakout of sorts has to be on the cards from here.
Pound Slumps as Borrowing Rises
Morning Report: 09.00 London
• This morning, financial markets are pausing for breath after a strong performance yesterday on the back of healthy earnings figures from the likes of Apple. The dollar index is also on the front foot, reversing Tuesday’s early slump.
• The big mover so far today is the British pound which is falling back after public sector net borrowing widened more than expected yesterday. Despite an improving economy, tax receipts are not coming in as expected for George Osbourne. The GBP/JPY is down 0.35%. with the GBP/USD off by 0.18%. The EUR/ GBP has also reversed its recent down trend.
• Elsewhere, the yen pairs have a negative bias as the the USD/JPY maintains the down side pressure.
Coming up today:
• Coming up today we have the minutes from the last MPC meeting at 09.30.
• This is followed at 13.30 with Canadian core retail sales and US CPI.
• At 15.00 we get the latest rate statement from the Bank of Canada, with no change expected. A press conference follows at 16.15.
Trade Idea:
• The AUD/JPY has been caught in a trading zone since the start of the week, but this is unlikely to last long. A breakout of sorts has to be on the cards from here.
• The most likely direction is in line with the medium term trend, which makes a bearish trade attractive.
A good way to play this is a ONE TOUCH trade predicting that the AUD/JPY will TOUCH 93.00 within the next 5 days for a potential return of 121% if successful.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
Summary:
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