Morning Report: 08.00 London

• This morning, markets have made a soft start despite overnight agreement on the creation of a eurozone banking supervisor.

• The dollar has been the main winner overnight as traders switch back into ‘safer’ assets. Gold is suffering in the face of this dollar strength.

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• The dollar pairs are seeing the biggest movement. The British pound is down slightly after a big fall last night, while the euro continues to slip back from the highs.

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Coming up today:

• Coming up today, we have European current account data at 09.00, with the second day of the EU economic summit ta king place in the background.

• At 09.30, we have public sector net borrowing with a slight drop to 11.9bn expected.

• Canadian core CPI follows at 13.30, with US existing home sales follow at 15.00.

Bet Idea: 

• The GBP/USD suffered sharp falls last night as the pound continues to under perform its peers. Big falls like this have led to follow on selling in the past, perhaps not immediately, but there is at least the potential for the October lows to be breached.

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A good way to play this might be a LOWER trade predicting that the GBP/USD closes b elow 1.5975 in 7 days time for a potential return of 231%. 

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This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.

Summary:

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