Markets Optimistic Despite QE Withdrawal

Morning Report: 09.00 London

• Markets are on the rise this morning, despite the prospect of a formal end to the Fed’s Quantitative Easing program that has supported the bull run for the best part of five years. The S&P 500 is on the rise, while the dollar index dips lower.
                                                                 

                               

                               
                                                                                                                                                                   
• The main ‘risk-on’ pairs of the AUD/USD, NZD/USD and AUD/JPY are also pushing higher, with the former helped by the dollar index backing off.

                               

                               
                                                
                               

• The euro is also on the rise after strong German Import prices this morning.
                     
                               

Coming up today:

• Coming up today, we have US core durable goods orders from 12.20, the S&P/CS Composite at 13.00, then the CB consumer confidence number at 14.00.

• MPC member Cunluffe speaks at 17.30.

Trade Idea:

• The end of QE marks the end of an era, which should bring some erratic activity in both directions. This morning’s rally on the AUD/JPY could therefore be reversed quickly in the coming days, making a LOWER trade attractive.

                               

A good way to play this is a LOWER trade predicting that the AUD/JPY will close below 95.00 in 3 days time for a potential return of 138%.

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

Summary: