Is The Euro ‘Crazy?’

Morning Report: 08.45 London

• Markets are mixed this morning as equities dip slightly and commodity pairs rebound. The S&P 500 saw some decent selling pressure last night and this is carrying over into the morning session.
 

• Elsewhere, the Australian and New Zealand dollar are rebounding after last week’s sell-off.

                               

                               

• This move comes despite the dollar index continuing to push higher. This dollar strength is partly behind the euro weakness this morning.

                               

                               

                                                                                                                      
Coming up today:

• Coming up today we have UK manufacturing production at 09.30, followed by the latest NIESR GDP estimate at 15.00.

• Also at 15.00 we get the latest JOLTS Job Openings, followed by FOMC member Kocherlakota speaking at 18.45.

Trade Idea:

• This morning, there are reports that the ECB is under pressure from a leading industrialist who is calling on the central bank to tackle the ‘crazy’ strength of the euro. Whether crazy or not, there is certainly a case to be made that the euro needs to drop further if the troubled regions are to stand a chance of a recovery.

                               

A good way to play this could be a LOWER trade predicting that the EUR/USD will close below 1.3500 in 90 days time for a potential return of 177%.

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

Summary: