The pound is at least stable this morning and trading above yesterday’s lows with some signs of small confidence returning. The GBP/USD plunged by over 1% on the news that Theresa May would Postpone the Brexit vote. The GBP/JPY slumped to its lowest levels since August, while the EUR/GBP spiked to test the summer highs.
Overall though, the dollar index is on the back foot after posting sizeable gains yesterday.
This is allowing the EUR/USD to make small gain, while the AUD/USD is building on yesterday’s out-performance.
The USD/CAD has continued its testing of the highs as oil prices remain weak.
The USD/CHF continues to struggle by contrast, testing its lowest levels since October as demand for the safe haven Swiss franc rises. The EUR/CHF is also seeing a similar decline.
Yen pairs are mixed, with the USD/JPY down after strong gains yesterday. By contrast, the EUR/JPY and AUD/JPY are building on yesterday’s gains.
Coming up today
At 09.30, we have UK average earnings index and unemployment rate.
German ZEW economic sentiment is at 10.00.
US PPI is at 13.30, released alongside core PPI.
RBNZ governor Orr speaks at 19.15.
Trade Idea
Demand for the Swiss franc is only set to increase in the current uncertain times. This out-performance is best seen on the EUR/CHF which is sloping back towards the lows.
Morning Report: 07.00 London
The pound is at least stable this morning and trading above yesterday’s lows with some signs of small confidence returning. The GBP/USD plunged by over 1% on the news that Theresa May would Postpone the Brexit vote. The GBP/JPY slumped to its lowest levels since August, while the EUR/GBP spiked to test the summer highs.
Overall though, the dollar index is on the back foot after posting sizeable gains yesterday.
This is allowing the EUR/USD to make small gain, while the AUD/USD is building on yesterday’s out-performance.
The USD/CAD has continued its testing of the highs as oil prices remain weak.
The USD/CHF continues to struggle by contrast, testing its lowest levels since October as demand for the safe haven Swiss franc rises. The EUR/CHF is also seeing a similar decline.
Yen pairs are mixed, with the USD/JPY down after strong gains yesterday. By contrast, the EUR/JPY and AUD/JPY are building on yesterday’s gains.
Coming up today
At 09.30, we have UK average earnings index and unemployment rate.
German ZEW economic sentiment is at 10.00.
US PPI is at 13.30, released alongside core PPI.
RBNZ governor Orr speaks at 19.15.
Trade Idea
Demand for the Swiss franc is only set to increase in the current uncertain times. This out-performance is best seen on the EUR/CHF which is sloping back towards the lows.
A good way to play this is a LOWER trade predicting that the EUR/CHF will close below 1.1200 in 31 days for a potential return of 137%.
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