Euro Rallies as Dollar Retreats

Morning Report: 07.00 London

• This morning, the S&P 500 is on the front foot, while the dollar retreats – a divide that appears to be corresponding with a general ‘risk-on’ trend across the board.

• The NZD/USD is leading the dollar pairs higher, with the AUD/USD recovering somewhat.

• The euro is also traveling well after weekend largely free of negative Greek headlines.

• The USD/JPY is starting to tail lower, mainly on the back of a softer euro.

                                                                                                                                                                                                                    
Coming up today:

• Coming up today we have German Ifo business climate at 09.00, followed by M3 money supply.

• This afternoon we have core durable goods orders at 13.30.

Trade Idea:

The Australian dollar is performing well against the US dollar today, but longer term the Australian dollar is still facing a stiff headwind of lower commodity prices.

The British economy my contrast looks to be heading for a rate hike in the near future, meaning there could be further upside for the GBP/AUD.

A good way to play this is a HIGHER trade predicting that the GBP/AUD will close above 2.1400 in 28 days time for a potential return of 114%. 

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Summary: