Jan 22nd 2019: Dollar Gains as IMF Cuts Global Growth Forecast
January 22, 2019 9:11 am
Morning Report: 07.00 London
The dollar index is on the rise as traders seek out reassurance following the IMF’s cut to global growth forecasts.
The AUD/USD is slipping back from the 0.7200 level, making losses for the third day in a row.
The EUR/USD continues to reverse from the failed assault on the 1.1500 level to trade just above support at 1.1350. The GBP/USD is showing some relative strength after failing at the 1.3000 level, and although down today is knocking on the door of 1.2900.
Other dollar pairs including the USD/CAD are on the rise, with the USD/CHF continuing its unexpected rally back up to the parity line – now at 0.9978.
The USD/JPY is slipping back despite general dollar strength elsewhere. The AUD/JPY is the biggest loser this morning, with the EUR/JPY also slipping back and the GBP/JPY following suit.
Gold is struggling at the highs though as dollar strength trumps safe haven desires.
Coming up today
Today, we have UK average earnings index, public sector net borrowing and unemployment rate at 09.30.
German ZEW Economic Sentiment is at 10.00.
Canadian manufacturing sales are at 13.30.
Trade Idea
The yen is back in demand this morning as traders weigh up the threat of global growth slowing – in particular the global growth engine of China.
The EUR/JPY is on the back foot as the euro in particular shows signs of a slow down.
Morning Report: 07.00 London
The dollar index is on the rise as traders seek out reassurance following the IMF’s cut to global growth forecasts.
The AUD/USD is slipping back from the 0.7200 level, making losses for the third day in a row.
The EUR/USD continues to reverse from the failed assault on the 1.1500 level to trade just above support at 1.1350. The GBP/USD is showing some relative strength after failing at the 1.3000 level, and although down today is knocking on the door of 1.2900.
Other dollar pairs including the USD/CAD are on the rise, with the USD/CHF continuing its unexpected rally back up to the parity line – now at 0.9978.
The USD/JPY is slipping back despite general dollar strength elsewhere. The AUD/JPY is the biggest loser this morning, with the EUR/JPY also slipping back and the GBP/JPY following suit.
Gold is struggling at the highs though as dollar strength trumps safe haven desires.
Coming up today
Today, we have UK average earnings index, public sector net borrowing and unemployment rate at 09.30.
German ZEW Economic Sentiment is at 10.00.
Canadian manufacturing sales are at 13.30.
Trade Idea
The yen is back in demand this morning as traders weigh up the threat of global growth slowing – in particular the global growth engine of China.
The EUR/JPY is on the back foot as the euro in particular shows signs of a slow down.
A good way to play this is a LOWER trade predicting that the EUR/JPY will close below 124.00 in 14 days for a potential return of 130%.
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