Jan 17th 2017: Dollar Softens as EU and US Exchange Volleys

• The dollar is on the back foot this morning as the EU fights back following Trump’s comments that it operates as a vehicle for Germany. The dollar has extended its losing run, while the dollar pairs are pushing higher. The AUD/ USD is performing especially well, with the NZD/ USD top of the chasing pack.
• The USD/ JPY is down again, making it seven straight down days in a row, and nine of the last 10.
• The pound is performing slightly better, with the EUR/ GBP dropping this morning.

Coming up today:

• Coming up today, we have UK CPI, PPI and RPI at 09.30.
• This is followed by German ZEW economic sentiment at 10.00.
• At 13.39, we get the empire state manufacturing index.
• Treasury Secretary Lew speaks at 15.00 at the same time as FOMC member Brainard.

Trade Idea:

• The Australian and New Zealand dollars have out performed recent and this morning it’s the Kiwi’s turn to shine.

• A good way to play this is a HIGHER trade predicting that the NZD/ USD will close above 0.7250 in 14 days for a potential return of 226%.