Morning Report: 08.15 London
Last night saw a dramatic final hour 4% swing in US stock markets as European officials announced plans for a coordinated defence of the region's banks. In addition, German finance minister Shauble stated that the country would reinstate support mechanisms put in place in 2008 to support the banks. No firm plans have been made, but markets like the idea that officials are finally getting the message.
The euro rallied into the close, lifting other currencies with it as the dollar and yen retreated. This morning things have slipped back a touch with the EUR/ USD down 0.10% and the EUR/ JPY off by 0.31%.
The biggest faller so far today is the pound ahead of important economic data this morning. The GBP/ USD is off by 0.25% with the GBP/ JPY off by 0.45%.
Coming up today:
Coming up today we have UK current account data at 09.30 with an increased deficit to -10.4bn. At the same time we have UK services PMI with a drop to 50.6 expected and Final GDP with small increase of 0.2% on the cards.
At 13.15 we have US ADP Non Farm employment change and US Non Manufacturing PMI due at 15.00.
Trade Idea on BetOnMarkets.com:
The USD/ CAD has been hard hit recently, ever since bursting through the 1.0000 level in the middle of September. IF the next couple of days continue the relief rally, this could translate into a short term stabilisation for the USD/ CAD. That is until Friday's important payroll data for both countries.
A good way to play this may be an IN/ OUT trade on BetOnMarkets.com predicting that the USD/ CAD will close between 1.0450 and 1.0600 in 1 days time (Thursday) for a potential return of 110%.
You can find direct links to this trade idea here: goo.gl/RA4ER