Morning Report: 07.00 London
This morning, there is still a mixed reaction to yesterday’s FOMC meeting where the Fed raised rates by 0.25% as expected, but kept additional guidance mostly the same as last month.
Most dollar pairs including the EUR/USD slipped yesterday, but there is a hint of a recovery this morning. The biggest win for the dollar came against the Canadian dollar, with the USD/CAD jumping to test 1.3050.
The AUD/USD has been out-performing however, with the pair holding at the 0.7200, building on Chinese strength.
A big exception is the GBP/USD, which is experiencing follow on selling after failing to break 1.3200 yesterday. The EUR/GBP broke lost ground yesterday, in favour of the pound, but those losses have been overcome with buying pressure so far this morning.
The USD/JPY slipped from the highs yesterday after failing to break the 113.00 level. The EUR/JPY also struggled to break resistance at 133.00. The GBP/JPY is experiencing follow on selling as the yen takes control.
Coming up today
At 09.00, we have European M3 Money Supply.
At 13.30, we get US core durable goods orders, released alongside final GDP.
ECB President Draghi speaks at 14.30.
Fed Chair Powell speaks at 21.30.
BOC Governor Poloz speaks at 22.45.
Trade Idea
The Australian dollar, like all dollar pairs is hardly pulling up trees at the moment, with press on the Chinese economy in the face of tariffs.
With the Fed keeping to a rate hike path, there could be further downside for the AUD/USD.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
