Dollar Roars On Interest Rate Speculation

Morning Report: 09.00 London

• The dollar is still dominant after rising sharply yesterday. The dollar shot higher yesterday following the latest FOMC statement that was widely interpreted as hinting at an interest rate hike is closer than expected. That momentum is carrying over this morning, forcing the major dollar pairs lower, while the stock market is still mixed.
                                                                 

                               

                               
                                                                                                                                                                   
• Gold and silver are the big losers, with silver down by 1.61% and gold down by 0.61%.

                               

                               

• The euro is showing relative weakness, with the EUR/USD off by 0.55% and the EUR/GBP down by 0.27%.
                                                
                               
                   
                               

• The USD/JPY looks set for its second straight day of gains, reaching back up to the late September highs.

                               

Coming up today:

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

• The main ticket is US Advance GDP at 12.30, with unemployment claims released at the same time.

• Following this, Fed Chair Yellen speaks at 13.00.

Trade Idea:

• The EUR/USD has quickly reversed its recent up move, putting its longer term down trend back on track.

                               

                               

With more downside potential from here, a good way to play this is a LOWER trade predicting that the EUR/USD will close below 1.2525 in 5 days time for a potential return of 159%.

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

Summary: