Fri, 30 Jan 2015
- This morning, financial markets are tucking back slightly after a late rally on the S&P 500 last night. This was largely inspired by corporate earnings from McDonalds and Boeing. The dollar index is dancing a similar tune as the highs remain in sight.
- The Australian dollar continues to weaken on speculation that the RBA will cut interest rates at their meeting last week. Australian equities enjoyed the news, not so the Aussie dollar.
- The euro is firm this morning, having made back 3/4 of Wednesday’s losses.
- The yen continues to back and fill, this time to the downside after slightly below par housing starts data.
- Finally, gold is recovering some of its poise after heavy selling yesterday.
- Coming up today we have UK net lending to individuals at 09.30.
- This is followed by European CPI flash estimate at 10.00 and unemployment claims.
- Canadian and US GDP follows at 13.30. With Chicago PMI at 14.45.
- With a rate cut in the offing and the US dollar heading in a different trajectory, the Australian dollar could have further downside from here.
- A good way to play this is a LOWER trade predicting that the AUD/ USD will close below 0.7700 in 35 days for a potential return of 133%
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.