• This morning, markets are still absorbing yesterday’s FOMC meeting outcome. The Fed surprised many market watchers by implying that the December meeting was very much alive. Markets are now implying a 45% chance of a December hike against previous expectations of around 37%. The dollar index shot higher as a result.
• Elsewhere, the main dollar pairs suffered, with the EUR/USD declining further and under performing the pound.
• The Aussie and New Zealand dollars are under pressure again this morning, with the NZD/USD showing relative weakness. The RBNZ opted to keep rates on hold yesterday.
• The USD/JPY nudged higher on the FOMC announcement, but is slipping back towards the main trading range again this morning.
Coming up today:
• Coming up today we have Spanish CPI at 08.00 and German unemployment change at 08.55.
• UK net lending to individuals follows at 09.30.
• From 12.30 we switch to North America for Canadian RMPI and Advance US GDP, released alongside unemployment claims.
• Following this we have FOMC member Lockhart speaking at 13.10 and pending home sales at 14.00.
Trade Idea:
• With the Fed keeping the prospect of a December hike alive, the euro has suffered. Regardless of Fed policy, the euro is still vulnerable from within as the eurozone economy continues to struggle.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
December Fed Still Alive
Morning Report: 06.45 London
• This morning, markets are still absorbing yesterday’s FOMC meeting outcome. The Fed surprised many market watchers by implying that the December meeting was very much alive. Markets are now implying a 45% chance of a December hike against previous expectations of around 37%. The dollar index shot higher as a result.
• Elsewhere, the main dollar pairs suffered, with the EUR/USD declining further and under performing the pound.
• The Aussie and New Zealand dollars are under pressure again this morning, with the NZD/USD showing relative weakness. The RBNZ opted to keep rates on hold yesterday.
• The USD/JPY nudged higher on the FOMC announcement, but is slipping back towards the main trading range again this morning.
Coming up today:
• Coming up today we have Spanish CPI at 08.00 and German unemployment change at 08.55.
• UK net lending to individuals follows at 09.30.
• From 12.30 we switch to North America for Canadian RMPI and Advance US GDP, released alongside unemployment claims.
• Following this we have FOMC member Lockhart speaking at 13.10 and pending home sales at 14.00.
Trade Idea:
• With the Fed keeping the prospect of a December hike alive, the euro has suffered. Regardless of Fed policy, the euro is still vulnerable from within as the eurozone economy continues to struggle.
A good way to play this is a LOWER trade predicting that the EUR/USD will close below 1.0800 in 35 days time for a potential return of 197%.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
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