• The monetary policy gap between the US and EU is behind strong moves in the euro yesterday after ECB officials hinted at more assistance via quantitative easing, while US officials nudged a rate hike back on the agenda. Markets are quiet this morning though with the US dollar nipping back after two days of solid gains.
• Combined with the recall shock on VW cars, the euro has endured a difficult 24 hours, with the EUR/ USD on the back foot since Friday.
• China continues to stalk markets and the prospect of a firmer US interest rate policy has been enough to knock a nascent Aussie and Kiwi recovery.
• Yen pairs remain range bound however.
Coming up today:
• We have UK public sector net borrowing at 09.30, with MPC
• Member Shafik speaking at 19.00
Trade Idea:
• The EUR/USD unwound much of its China-related surge from late August, but there has been a delayed pullback on the EUR/GBP. There is downside potential from here though as a euro rate hike remains a distant possibility.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
US/EU Gap Highlighted
Morning Report: 08.00 London
• The monetary policy gap between the US and EU is behind strong moves in the euro yesterday after ECB officials hinted at more assistance via quantitative easing, while US officials nudged a rate hike back on the agenda. Markets are quiet this morning though with the US dollar nipping back after two days of solid gains.
• Combined with the recall shock on VW cars, the euro has endured a difficult 24 hours, with the EUR/ USD on the back foot since Friday.
• China continues to stalk markets and the prospect of a firmer US interest rate policy has been enough to knock a nascent Aussie and Kiwi recovery.
• Yen pairs remain range bound however.
Coming up today:
• We have UK public sector net borrowing at 09.30, with MPC
• Member Shafik speaking at 19.00
Trade Idea:
• The EUR/USD unwound much of its China-related surge from late August, but there has been a delayed pullback on the EUR/GBP. There is downside potential from here though as a euro rate hike remains a distant possibility.
A good way to play this is a LOWER trade predicting that the EUR/GBP closes below 0.7200 in 10 days time for a potential return of 113%.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
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