May 30th, 2018: Markets Slip Into Risk-Off Mode on Italy Fears
May 30, 2018 11:11 am
Morning Report: 07.00 London
The euro is at least stabilising after hefty selling yesterday as traders fret over the state of Italian political and banking systems. The EUR/JPY is posting small gains this morning, but the damage was done yesterday, with the pair off by 1.58% on the week.
Markets are generally seeking out safer harbours, driving demand for the yen while the yen suffers. The EUR/USD is unchanged after testing the 1.1500 level, with other euro pairs on the back foot, especially the EUR/CHF which plunged to below 1.1400.
While the euro is under-performing, other dollar are also under pressure. The GBP/USD is unchanged this morning after breaking through 1.3300 yesterday. The AUD/USD is on the rise after hefty selling yesterday. The US dollar index continues to rise, helped by in-line consumer confidence.
The USD/JPY is on the rise, but the considerable damage was done yesterday, with the pair breaking through 108.50 yesterday. The AUD/JPY is following suit after plunging to 81.00, finding support there this morning. The GBP/JPY is following a similar trend.
The USD/CAD has continued to push higher on US dollar strength and a weaker Canadian dollar, hurt by plunging oil prices.
Coming up today
Today we have US CB consumer confidence at 15.00.
Trade Idea
While the EUR/USD has gather negative headlines, the GBP/USD has hardly been a picture of harmony. The pound continues to sell off in the face of dollar strength as interest rate expectation are pushed into the distance.
Morning Report: 07.00 London
The euro is at least stabilising after hefty selling yesterday as traders fret over the state of Italian political and banking systems. The EUR/JPY is posting small gains this morning, but the damage was done yesterday, with the pair off by 1.58% on the week.
Markets are generally seeking out safer harbours, driving demand for the yen while the yen suffers. The EUR/USD is unchanged after testing the 1.1500 level, with other euro pairs on the back foot, especially the EUR/CHF which plunged to below 1.1400.
While the euro is under-performing, other dollar are also under pressure. The GBP/USD is unchanged this morning after breaking through 1.3300 yesterday. The AUD/USD is on the rise after hefty selling yesterday. The US dollar index continues to rise, helped by in-line consumer confidence.
The USD/JPY is on the rise, but the considerable damage was done yesterday, with the pair breaking through 108.50 yesterday. The AUD/JPY is following suit after plunging to 81.00, finding support there this morning. The GBP/JPY is following a similar trend.
The USD/CAD has continued to push higher on US dollar strength and a weaker Canadian dollar, hurt by plunging oil prices.
Coming up today
Today we have US CB consumer confidence at 15.00.
Trade Idea
While the EUR/USD has gather negative headlines, the GBP/USD has hardly been a picture of harmony. The pound continues to sell off in the face of dollar strength as interest rate expectation are pushed into the distance.
More downside could be on the cards and a good way to play this is a LOWER trade predicting that the GBP/USD will close below 1.3200 in 14 days for a potential return of 137%.
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