• English

Daily Report

October 9th, 2017: Pound Recovers on Data Error

Morning Report: 07.00 London

This morning, the British pound is recovering after it emerged that the ONS released a data error which underplayed wage growth inflation. Coupled with this, Theresa May appears to have staved off a leadership challenge for now. The GBP/USD is trading higher again, while the EUR/GBP has slipped lower.

It was a volatile session for the US dollar on Friday as it rose significantly then fell back. US Non Farm Payrolls fell short, but this was expected in part due to Hurricane Irma. The dollar is unchanged this morning.

The yen pairs are mixed, with gains for the USD/JPY and GBP/JPY but losses for the AUD/JPY.

The AUD/USD is resuming its down trend, while the NZD/USD rallies.

Gold has rebounded quite sharply this morning as investors bet on higher global inflation.

Coming up today

It is a quiet day on the economic news front, with a Japanese, Canadian and US public holiday.

Trade Idea

The EUR/GBP is trading lower this morning as UK inflation expectations nudge up again, while Theresa May’s leadership position solidifies somewhat.

October 9th, 2017: Pound Recovers on Data Error

We could see further downside from here and a good way to play this is a LOWER trade predicting that the EUR/GBP will close below 0.8900 in 14 days for a potential return of 132%.

October 9th, 2017: Pound Recovers on Data Error