Nov 3rd 2016: Rate Hike Prospect Not Enough To Lift Dollar

• This morning, the US dollar is set for another sell-off, principally sparked by the complete uncertainty over the US election result. Not even the prospect of a rate hike in December can lift the dollar at the moment.

• The USD/JPY is following the dollar lower, pushing other yen pairs in the same direction.

• Meanwhile, the Australian and New Zealand dollars are performing well this morning, with the NZD/USD out performing overall

• Meanwhile, gold continues to find buyers as investors seek out safer harbours.

Coming up today: 

• Coming up today, we have Spanish unemployment change at 08.00.
• This is followed by UK services PMI. The EU membership court ruling follows at 10.00.
• At 12.00, we get the BOE inflation report alongside the monetary policy summary – no change is expected. The latest asset purchase facility is updated at the same time. Carney then speaks at 12.30.
• Also at 12.30, we get US unemployment claims, alongside preliminary non far productivity and unit labor costs.
• Following this, we have ISM non manufacturing PMI and factory orders at 14.00.

Trade Idea: 

• The NZD/USD continues to out perform and with electoral uncertainty set to continue, there could be further upside from here.

• A good way to play this is a HIGHER trade predicting that the NZD/USD will close above 0.7400 in 14 days for a potential return of 166%.