Another Aussie Rate Cut?

Morning Report: 06.30 London

• This morning, the Australian Dollar is on the back foot after a poor set of retail sales fueled speculation of another rate cut.

• The NZD/USD remains volatile with a negative bias in sympathy.

• Meanwhile, the Dollar index remains relatively unchanged, while the USD/JPY drops lower for the second straight day after a generally positive set of employment figures on Friday.

• The Pound remains the sick man of Europe in comparison to the Euro and then to other currencies. Friday’s below par manufacturing PMI added to the recent collection of sub par economic data.

Coming up today:

• Coming up today we have Spanish unemployment change at 08.00.

• This is followed by UK construction PMI at 09.30.

• European unemployment data is released at 10.00.

• From 15.00, we have US factory orders.

Trade Idea:

• The wind is  blowing firmly against the Pound and although the Euro is far from faultless, we could see further EUR/GBP strength from here.

                     

A good way to play this is a HIGHER trade predicting that the EUR/GBP will close above 0.8150 in 35 days could return 248% if successful.

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