Dec 4th 2018: Dollar Retreats Further as Markets Embrace Risk
December 4, 2018 9:11 am
Morning Report: 07.00 London
Markets have a bullish bias this morning as traders shun the dollar in favour of ‘riskier’ assets and the yen.
The biggest moves can be seen on the USD/JPY which is down 0.5%, as the weak dollar meets the resurgent yen. Other yen pairs are following suit, with the GBP/JPY off by 0.37% and the EUR/JPY down just 0.22%.
The AUD/JPY is holding its Monday gap for now, though is reversing a little further this morning. The RBA kept rates on hold at 1.5% as expected.
Dollar pairs are performing well as the dollar index looks to test yesterday’s lows.
The euro is one of the winners as European officials speak of plans for the euro to rival the dollar as a reserve currency. The EUR/USD is up 0.25% so far this morning.
The GBP/USD is recovering from yesterday’s volatility and climbing from the support level at 1.2700 which held firm yesterday.
The USD/CAD has continued its retreat, furthering yesterday’s losses and undoing much of the late November rally.
The USD/CHF is also on the back foot after another failed attack on the parity line yesterday.
Coming up today
BOE governor Carney speaks at 09.15.
UK construction PMI is at 09.30.
FOMC member Williams speaks at 15.00.
MPC member Vlieghe speaks at 18.00.
Trade Idea
The USD/CHF rejected the 1.0000 level again yesterday and while there is every chance this line will be broken in the coming weeks, it may be better to bet on a fake and reversal lower to shake out some of the sellers before this happens.
Morning Report: 07.00 London
Markets have a bullish bias this morning as traders shun the dollar in favour of ‘riskier’ assets and the yen.
The biggest moves can be seen on the USD/JPY which is down 0.5%, as the weak dollar meets the resurgent yen. Other yen pairs are following suit, with the GBP/JPY off by 0.37% and the EUR/JPY down just 0.22%.
The AUD/JPY is holding its Monday gap for now, though is reversing a little further this morning. The RBA kept rates on hold at 1.5% as expected.
Dollar pairs are performing well as the dollar index looks to test yesterday’s lows.
The euro is one of the winners as European officials speak of plans for the euro to rival the dollar as a reserve currency. The EUR/USD is up 0.25% so far this morning.
The GBP/USD is recovering from yesterday’s volatility and climbing from the support level at 1.2700 which held firm yesterday.
The USD/CAD has continued its retreat, furthering yesterday’s losses and undoing much of the late November rally.
The USD/CHF is also on the back foot after another failed attack on the parity line yesterday.
Coming up today
BOE governor Carney speaks at 09.15.
UK construction PMI is at 09.30.
FOMC member Williams speaks at 15.00.
MPC member Vlieghe speaks at 18.00.
Trade Idea
The USD/CHF rejected the 1.0000 level again yesterday and while there is every chance this line will be broken in the coming weeks, it may be better to bet on a fake and reversal lower to shake out some of the sellers before this happens.
A good way to play this is a ONE TOUCH trade predicting that the USD/CHF will TOUCH 0.9850 within 10 days for a potential return of 134%.
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