This morning, markets have started the week with positive intent, with demand for safe havens diminishing. The US dollar index has gapped lower at the open, while the Japanese yen continues to back off.
The USD/JPY in particular has gapped higher, as the pair puts more distance away from last week’s lows.
The big winner is the AUD/JPY which is gapping higher on the surprise re-election of Scott Morrison. The pair is still yet to recover last week’s losses however.
The EUR/JPY also gapped higher, though is off the highs, while the GBP/JPY has opened with positive intent, but still sits below Friday’s opening levels.
Dollar pairs are being led by the AUD/USD which is showing firm buying intent. The EUR/USD is lagging however and is lower for the third straight day with a test of support at 1.1150 on the cards. The GBP/USD has gapped higher, but this barely forms a notch against Friday’s heavy losses that saw the pair sink below 1.27.50. The EUR/GBP is struggling for the first time since May 6th.
Elsewhere, the USD/CHF has continued its recovery and is trading above 1.0100.
Coming up today
Today, is a public holiday in Canada.
At 16.30, MPC member Broadbent speaks at 16.30.
FOMC member Clarida speaks at 17.05.
Fed Chair Powell speaks at 23.00.
Trade Idea
The pound is showing some relative strength today, but the Brexit difficulties remain intractable.
Morning Report: 07.00 London
This morning, markets have started the week with positive intent, with demand for safe havens diminishing. The US dollar index has gapped lower at the open, while the Japanese yen continues to back off.
The USD/JPY in particular has gapped higher, as the pair puts more distance away from last week’s lows.
The big winner is the AUD/JPY which is gapping higher on the surprise re-election of Scott Morrison. The pair is still yet to recover last week’s losses however.
The EUR/JPY also gapped higher, though is off the highs, while the GBP/JPY has opened with positive intent, but still sits below Friday’s opening levels.
Dollar pairs are being led by the AUD/USD which is showing firm buying intent. The EUR/USD is lagging however and is lower for the third straight day with a test of support at 1.1150 on the cards. The GBP/USD has gapped higher, but this barely forms a notch against Friday’s heavy losses that saw the pair sink below 1.27.50. The EUR/GBP is struggling for the first time since May 6th.
Elsewhere, the USD/CHF has continued its recovery and is trading above 1.0100.
Coming up today
Today, is a public holiday in Canada.
At 16.30, MPC member Broadbent speaks at 16.30.
FOMC member Clarida speaks at 17.05.
Fed Chair Powell speaks at 23.00.
Trade Idea
The pound is showing some relative strength today, but the Brexit difficulties remain intractable.
As such, there could lower levels from here and a good way to play this is a ONE TOUCH trade predicting that the GBP/USD will touch 1.2650 within the next 14 days for a potential return of 102%.
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