• The dollar index rapidly regained the 14 day moving average yesterday after economic data supported the view that US rates would be going up in the summer. The dollar has backed off a little this morning, but the impact of the move still remains across dollar pairs.
• The S&P 500 by contrast is slipping lower as a rate hike is not exactly something equities want on the menu.
• The dollar pairs are all rebounding this morning though, with the GBP/ USD taking the lead. The NZD/ USD is not far behind.
• The euro is lagging however, with the EUR/USD up just 0.15% and the EUR/GBP continuing to fall.
Coming up today: • Coming up today we have preliminary US GDP data at 13.30, with a rise of 2.1% expected.
• Following this we have Chicago PMI at 14.45 and pending home sales at 15.00. FOMC members are then speaking at 15.15 and 18.30 respectively.
Trade Idea:
• Yesterday’s move showed that the dollar is still the key mover of FX markets right now, with a rate hike now increasingly likely in the summer. The British pound has been on a similar trajectory though and despite some mixed data recently, the UK is on a path to higher rates.
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.
Markets React To Summer US Hike
Morning Report: 06.30 London
• The dollar index rapidly regained the 14 day moving average yesterday after economic data supported the view that US rates would be going up in the summer. The dollar has backed off a little this morning, but the impact of the move still remains across dollar pairs.
• The S&P 500 by contrast is slipping lower as a rate hike is not exactly something equities want on the menu.
• The dollar pairs are all rebounding this morning though, with the GBP/ USD taking the lead. The NZD/ USD is not far behind.
• The euro is lagging however, with the EUR/USD up just 0.15% and the EUR/GBP continuing to fall.
Coming up today:
• Coming up today we have preliminary US GDP data at 13.30, with a rise of 2.1% expected.
• Following this we have Chicago PMI at 14.45 and pending home sales at 15.00. FOMC members are then speaking at 15.15 and 18.30 respectively.
Trade Idea:
• Yesterday’s move showed that the dollar is still the key mover of FX markets right now, with a rate hike now increasingly likely in the summer. The British pound has been on a similar trajectory though and despite some mixed data recently, the UK is on a path to higher rates.
A good way to play this is a HIGHER trade predicting that the GBP/JPY will close above 186.00 in 90 days time for a potential return of 110% in 90 days.
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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