Commodities lead rebound
After the Fed dashed hopes of a further round of Quantitative Easing, strength in economic data is ever more important. Unfortunately, the omens weren´t good yesterday with a disappointing auction of Spanish bonds contributing to a risk asset sell off.
However, things are looking a little more optimistic this morning, with commodities and commodity related currencies leading the rebound.
The NZD/USD and AUD/USD are leading the fight back, with both pairs up 0.45%. The AUD/JPY is not fair behind, up 0.28%. Gold is also trading higher after a two day plunge, up 0.30% this morning.The euro is also holding its own so far this morning, with the EUR/ USD up 0.13%.
Coming up today we have UK manufacturing production at 09.30 with a 0.1% gain expected. The pound has been on a good run lately (relative to the euro) and this manufacturing data could be key to the sustainability of this out performance. German industrial production follows at 11.00. With increasing signs of a Eurozone recession, traders will be looking for any big deviations from the expected loss of -0.3%.
At 12.00 we have the latest rate statement from the Bank of England with rates expected to stay the same. NIESR GDP estimates follow a 15.00. From 13.30 we have a series of data points that could provide hints for Friday´s big jobs report. From 13.30 we have Canadian employment change data with US unemployment claims released at the same time. Any big deviations here could cause traders to jump the gun on Friday´s numbers.
The EUR/USD has been on a three day slump as Eurozone fears rise again. The EUR/USD has generally been a good pull back currency especially following slumps like this, so there´s a fair chance of some upside from here even if tomorrow´s US jobs data is a big unknown.
A good way to play this on BetOnMarkets.com might be a HIGHER trade predicting that the EUR/USD closes above 1.3175 in 1 days time for a potential return of 120%. To get this trade now, go to:
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