Chinese Flower Power

Morning Report: 06.30 London

• Markets are slipping back again with commodities giving back most of Monday’s gains after it emerged that iron ore’s big spike may have been down to Chinese producers upping production ahead of a flower festival which required a shut down and blue skies. The Australian and New Zealand Dollars are the biggest losers so far.

• Oil prices slipped from the highs yesterday.

• The US Dollar continues to nudge higher as traders take a cautious tone.

• This in turn is hurting the Euro which has slipped back against the Dollar and Yen.

Coming up today:

• Today we have UK manufacturing production at 09.30.

• Following this we get the Canadian BOC rate statement with no change expected.

• US crude oil inventories follow at 15.30.

• Later at 20.00, New Zealand comes unders focus with the official cash rate and rate statement. The RBNZ press conference follows at 20.05.

Trade Idea:

• The Euro is under renewed pressure as risk appetite wanes. With the refugee crisis exposing fault lines across Europe, there could be further downside ahead.
                      

                             


A good way to play this is a LOWER trade predicting that the EUR/JPY closes below 123.00 in 21 days for a potential return of 132%.

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