Morning Report: 08.30 London

• This morning, the US dollar index continues to weaken further, hitting its lowest level since December 2009. The morning’s dollar losses aren’t huge, but they are well dispersed.
• The biggest gainer is the NZD/ USD which is up 0.71%, with the AUD/ USD up by 0.30%.
• The EUR/ USD is pushing higher towards the November high of 1.4282, trading roughly 40 pips below this at 4.4242.
• The British pound is strong this morning ahead of the morning’s inflation data due at 09.30. Analysts are speculating that UK CPI will have risen to 4.2%, its highest level since November 2008. This could be offset by an increase in public sector net borrowing which is expected to come in higher than the previous month.
• The GBP/ USD is pushing to session highs, up 0.3% with the GBP/ JPY up 0.15%.

Coming up today:

• Aside from the aforementioned UK inflation data, today we have Canadian core retail sales due at 12.30, expected to rise on last month.
• We also have a number central bankers/ treasury officials speaking with the FOMC’s Fisher speaking at 11.35, Treasury secretary Geithner speaking at 12.30 and MPC member Sentance speaking at 18.00 London.

Bet Idea:

• The Australian dollar is lagging behind its New Zealand counterpart this morning with the AUD/ USD higher by just 0.3%.

• The Aussie has rallied strongly off the lows just a few trading sessions ago and is now above the 1.0000 level once again. Today’s trading range is so far below average which hints that there is room for further upside today.
• A good way to play this might be a HIGHER trade predicting that the AUD/ USD will close above 1.0115 today could return 135% if successful.
• You can find direct links to this trading idea here.

Summary:

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