Markets Swap Gains & Losses Ahead Of Fed

Morning Report: 08:30 London

• Markets have been volatile overnight ahead of today’s FOMC announcement at 19.00. No change is expected to rates, but the contraction of the asset purchase program has been the centre of much speculation.
         

• Commodities are the big mover once again as gold and silver come under pressure. Neither look particularly oversold as of yet though.
                                                                                                                                                                                               

• Elsewhere, the British pound is giving back some ground after out performing yesterday.

                             
                             
                             

• Yen pairs are lower, but have been volatile throughout the morning.

                             

Coming up today:

• We’ve an extremely busy day ahead today with German unemployment change at 08.55, followed by European. CPI Flash estimate at 10:00.

• US ADP Non-Farm Employment change follows at 13.15, with US and Canadian. GDP following at 13.30.

• Chicago PMI follows at 14.15, leading up to the days big ticket – the FOMC statement at 19.00.

Trade Idea:

• The EUR/GBP dropped sharply yesterday as tensions continued to mount in Ukraine and European data generally disappointed.

                             

• While the UK is no bed of roses, the British economy’s recovery is still showing good momentum.

A good way to play this is a LOWER trade predicting that the EUR/GBP closes below 0.8200. This could return 143% if successful.

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

Summary: