This morning, markets are recovering amid unconfirmed rumours that the Chinese PBOC is about to the RRR. Whether this is true is unclear, but so far it does seem that markets are taking the opportunity to lift themselves off yesterday's lows.
This morning, markets are recovering amid unconfirmed rumours that the Chinese PBOC is about to the RRR. Whether this is true is unclear, but so far it does seem that markets are taking the opportunity to lift themselves off yesterday's lows.
The biggest movements are coming from Europe, especially on the yen pairs. The GBP/ JPY and EUR/JPY are both 0.55% higher with the GBP/ USD and EUR/ USD both 0.32% higher. The yen is slipping back again after yesterday's drop, exaggerating the rally for the GBP/ JPY etc. Although recovering, commodity currencies continue to lag, with the AUD/ USD up just 0.12%.
Coming up today we have the latest UK BBA mortgage approvals ratio with a slight increase expected. At 11.00 we have Canadian CPI numbers. At 14.00 we have US new home sales with Fed Chair Ben Bernanke speaking at 17.45.
The EUR/USD in particular is showing impressive resilience this week, with the pair rallying off the lows intraday every day this week. With the pair rallying well this morning, it could be a sign of hidden strength within the pair. A good way to play this on BetOnMarkets.com might be a HIGHER trade predicting that the EUR/USD closes above 1.3250 in 3 days time.
Get this trade now: http://goo.gl/0Y8H7