Markets Buoyed by US Consumer Confidence

Morning Report: 09.00 London

• Markets appear to have regained their appetite for risk taking after US consumer confidence surged to its highest level in seven years last night. The move pushed Stock markets back above the psychologically important 50 day moving average, helping to erase much of the losses from the last month. The dollar index is unchanged.
                                                                 

                               

                               
                                                                                                                                                                   
• The Australian and New Zealand dollars are rising the latest wave of optimism, with the AUD/USD up 0.33%.

                               

                               
                                                
                               

• The yen is still weighing on currency movements though, with the USD/JPY slightly down this morning.
                     
                               

Coming up today:

• There’s only one item of note today, indeed for this week and this is the Federal Reserve meeting at 18.00 in which the FOMC are expected to announce their withdrawal of the QE program. The exact wording will have more impact than the widely telegraphed announcement however.

• Elsewhere we have UK net lending to individuals at 09.30 and the NZD cash rate at 20.00.

Trade Idea:

• There’s not telling how markets will react to the fed today, but the momentum behind the NZD/USD is worth noting. Even a fairly neutral reading from the RBNZ tonight could help maintain this upwards push while the dollar dithers.

                               

A good way to play this is a HIGHER trade predicting that the NZD/USD will close above 0.8000 in 7 days time for a potential return of 183%.

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

Summary: