Fed Stays Course – Dollar Rallies

Morning Report: 07.00 London

• This morning, the US dollar is still sitting strong after the FOMC opted to keep rates on hold, while hinting that it is impressed by the ‘solid’ job gains.

• Stock markets also liked the news of positive economic endorsements and paused rates.

• Gold continues to be the big mover, hurt by the stronger dollar.

• Meanwhile, it’s the NZD/USD’s turn to sell off, despite the Aussie dollar having a relatively stable day.

• The Greek crisis may be off the front pages, but the problem is far for settled. The euro continues to struggle across the board.

                       
                                                                                                                                                                        Coming up today:

• Coming up today, we have German unemployment change at 08.55.

• US advance GDP, goods trade balance and unemployment claims follow at 13.30.

Trade Idea:

The prospect of a euro rate hike is still miles off compared to direction of the UK and US. As such, we could still see further downside regardless of the Greek resolution.

A good way to play this is a LOWER trade on the EUR/GBP predicting that pair closes below 0.6950 in 14 days for a potential return of 238%. 

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Summary: