Markets still optimistic despite far right gains 

Morning Report: 08:30 London

• This morning, currencies with the biggest exposure to China (Aussie and Kiwi) are coming under pressure after Chinese banks reported the largest level of bad debt since 2009. Many are expecting more bad news from the emerging power house, but nobody knows how far this will go.         

• The NZD/USD is down 0.60%, with the AUD/JPY off by 0.30%.

• By contrast, stock markets are happy to take on risk, with the S&P holding at all time highs.
                                                                                                                                           

• In Europe, the pound and euro are trading places, with sterling showing increasing signs of weakness, while the EUR/USD holds firm.

                                                        
                             

• Commodities are holding firm after big moves yesterday. The slump in gold wasn’t quite enough to trigger an over sold bounce yet.

                             
                                                                                                                                                         
Coming up today:

• Coming up today with German unemployment change at 08.55, followed by European money supply data at 09.00.

• UK CBI realised sales follow at 11.00.

Trade Idea:

• While a sharp sell off on gold can often spark a rapid rally, yesterday’s slump was not severe enough to trigger these conditions.

• As such, the opposite might happen and we could see further downside from here.

                             

A good way to play this is a LOWER trade predicting that gold will close below $1255.00 in 7 days time. This could return 195% if successful.

This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary: