China Wobbles as Fed Eyes Hike

Morning Report: 07.00 London

• This morning, world stock markets are nipping back slightly after powerful gains yesterday. This comes amid increasing uncertainty around China as emerging market currencies hit 14 year lows.

• The dollar index is fighting back after two days of gains as investors eye the prospect of a fed rate hike.

• Elsewhere, the Australian dollar is tucking back after gains yesterday.

• The euro is relatively quiet but this is unlikely to continue for long.

                       
                                                                                                                                                                        Coming up today:

• Coming up today, we haveUK net lending to individuals at 09.30.

• Pending home sales follow at 15.00, with crude inventories at 15.30.

• The big ticket is the FOMC statement at 19.00. No change is expected, but some analysts believe the Fed could surprise.

Trade Idea:

Gold’s plunge has at least stabilised and this could be a good sign as the recent drop is now firmly in over bought territory.

A good way to play this is a HIGHER trade predicting that gold will close above $1125 in 14 days time for a potential return of 279%. 

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