Dec 20th 2018: Dollar Climbs on Fed but Yen Dominates
December 20, 2018 12:11 pm
Morning Report: 07.00 London
The dollar index is down slightly after staging a post Fed rally on expectations of a bullish rate path. Overall there are mixed fortunes for dollar pairs.
The AUD/USD is lower again this morning after heavy selling yesterday that continues the December decline.
The GBP/USD is higher slightly after moderate losses yesterday. By contrast. The EUR/USD continues to outperform, rising for the fourth day in a row despite yesterday’s dollar strength. The EUR/GBP is slightly higher, but the euro’s dominance was clear in yesterday’s rally.
The USD/CAD is continuing its upswing however as the US dollar dominates the weakening Canadian dollar. The dollar is falling against the Swiss franc however, with the USD/CHF reversing most of yesterday’s losses.
While the dollar rose yesterday, it is the yen that is controlling currency moves. The USD/JPY dropped heavily this morning to test the 112.00 level.
The AUD/JPY continues to see spectacular selling, dropping 4.4% for the month of December.
Both the EUR/JPY and GBP/JPY are on the back foot, with the latter testing the December lows.
Coming up today
UK retail sales are at 09.30.
At 12.00, we have the MPC policy statement, with no change expected.
Trade Idea
The pound continues to trade with a Brexit millstone around its next and this could see further downside for the GBP/JPY.
Morning Report: 07.00 London
The dollar index is down slightly after staging a post Fed rally on expectations of a bullish rate path. Overall there are mixed fortunes for dollar pairs.
The AUD/USD is lower again this morning after heavy selling yesterday that continues the December decline.
The GBP/USD is higher slightly after moderate losses yesterday. By contrast. The EUR/USD continues to outperform, rising for the fourth day in a row despite yesterday’s dollar strength. The EUR/GBP is slightly higher, but the euro’s dominance was clear in yesterday’s rally.
The USD/CAD is continuing its upswing however as the US dollar dominates the weakening Canadian dollar. The dollar is falling against the Swiss franc however, with the USD/CHF reversing most of yesterday’s losses.
While the dollar rose yesterday, it is the yen that is controlling currency moves. The USD/JPY dropped heavily this morning to test the 112.00 level.
The AUD/JPY continues to see spectacular selling, dropping 4.4% for the month of December.
Both the EUR/JPY and GBP/JPY are on the back foot, with the latter testing the December lows.
Coming up today
UK retail sales are at 09.30.
At 12.00, we have the MPC policy statement, with no change expected.
Trade Idea
The pound continues to trade with a Brexit millstone around its next and this could see further downside for the GBP/JPY.
A good way to play this is a ONE TOUCH trade predicting that the GBP/JPY will touch 139.00 within the next 14 days for a potential return of 135%.
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