Cautious Fed Sinks Dollar

Morning Report: 06.30 London

• This morning, the Dollar remains under pressure after the minutes from the last FOMC meeting revealed a cautious Fed that may delay a rate hike until after June. The release sent the Dollar reeling against most other currencies, with oil prices enjoying an unexpected boost as a result.

• The Yen is picking up the baton as the world’s reserve currency, with the USD/JPY and other Yen pairs extending their recent losing run.

• Elsewhere, the Euro continues to out perform the Pound despite ongoing polical tremors across the region.

Coming up today:

• Coming up today we have UK Halifax HPI.

• This is followed by the minutes from the last ECB meeting.

• Canadian building permits then follow at 13.30, with US unemployment claims released at the same time.

• Fed chair Yellen then speaks at 22.30.

Trade Idea:

• With the Yen on a surge and the Pound struggling for traction, the GBP/JPY could have further to fall.

                     

A good way to play this is a LOWER trade predicting that the GBP/ JPY will close below 153.00 in 14 days for a potential return of 148%.

                         
                                                         

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