This morning, markets have woken up with a focus on the apparent dovish bias for the Fed for 2019, with the dollar index dropping lower from the open.
These early moves are even more apparent on dollar pairs which have gapped lower at the open. The most impressive of these moves have been seen on the AUD/USD which leapt higher the open to test levels not seen since August.
The EUR/USD has gapped higher and is still climbing, making back the majority of Friday’s losses.
The GBP/USD has followed suit, making good all of yesterday’s losses. The EUR/GBP has gapped higher based on the euro’s out-performance rather than any inherent pound weakness this morning.
One of the spectacular reversals has been seen on the USD/CAD which has gapped lower and continued selling through the morning.
The USD/CHF is down, but by a smaller margin, with the parity line still a target.
Despite threatening last week, the 114.00 resistance line is still breaking for USD/ JPY, with selling this morning. The AUD/JPY saw the most spectacular move, with an opening gap higher which is reversing slightly this morning.
Both the EUR/JPY and GBP/JPY have followed other yen pairs with an opening gap higher.
Coming up today
Today we have UK Manufacturing PMI at 09.30.
FOMC members Clarida, Quarles and Williams speak at 11.30, 13.00 and 14.15, respectively.
US ISM Manufacturing PMI is at 15.00.
FOMC member Brainard speaks at 15.30
MPC Member Haldane speaks at 17.30.
Trade Idea
The AUD/JPY has made a spectacular gap higher at the open, but more often than not, gaps have been closed recently.
Morning Report: 07.00 London
This morning, markets have woken up with a focus on the apparent dovish bias for the Fed for 2019, with the dollar index dropping lower from the open.
These early moves are even more apparent on dollar pairs which have gapped lower at the open. The most impressive of these moves have been seen on the AUD/USD which leapt higher the open to test levels not seen since August.
The EUR/USD has gapped higher and is still climbing, making back the majority of Friday’s losses.
The GBP/USD has followed suit, making good all of yesterday’s losses. The EUR/GBP has gapped higher based on the euro’s out-performance rather than any inherent pound weakness this morning.
One of the spectacular reversals has been seen on the USD/CAD which has gapped lower and continued selling through the morning.
The USD/CHF is down, but by a smaller margin, with the parity line still a target.
Despite threatening last week, the 114.00 resistance line is still breaking for USD/ JPY, with selling this morning. The AUD/JPY saw the most spectacular move, with an opening gap higher which is reversing slightly this morning.
Both the EUR/JPY and GBP/JPY have followed other yen pairs with an opening gap higher.
Coming up today
Today we have UK Manufacturing PMI at 09.30.
FOMC members Clarida, Quarles and Williams speak at 11.30, 13.00 and 14.15, respectively.
US ISM Manufacturing PMI is at 15.00.
FOMC member Brainard speaks at 15.30
MPC Member Haldane speaks at 17.30.
Trade Idea
The AUD/JPY has made a spectacular gap higher at the open, but more often than not, gaps have been closed recently.
A good way to play this is a ONE TOUCH trade predicting that the AUD/JPY will touch 82.50 within 7 days for a potential return of 154%.
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