The dollar index remains in a restricted trading range this morning as the US governmental shut down becomes the longest such deadlock in history. The crux of the matter remains payment for Trump’s wall across the Mexican border.
This and disappointing China export data has pushed money into the perceived safety of the Japanese yen, with the USD/JPY reversing Friday’s gains and testing the support level at 108.00.
Other yen pairs are following suit, with the AUD/JPY reversing after failing to break the 78.00 level. The GBP/JPY outperformed on Friday, ending the week on a positive note, with moderate falls this morning.
The EUR/JPY fell back last week, dropping for three straight days from the 125.00 support level. The EUR/GBP reversed heavily breaking the 2019 lows with small gains this morning. There are growing hopes of some sort of accommodation to help Theresa May from the EU side in the face of a likely deal rejection this week. The EUR/USD is making small gains after two days of losses.
Other dollar pairs are mixed, with the GBP/USD experiencing moderate losses following Friday’s rally. The AUD/USD is underperforming following the disappointing China data, dropping below the 0.7200 level.
The USD/CAD is rallying for the third day in a row as the dollar regains its poise. Meanwhile, the USD/CHF is reversing some of last week’s gains, but movements are slight so far.
Coming up today
There are no moderate to large ticket items today, though Brexit rumours will no doubt steer the pound’s movements.
Trade Idea
With the US government shut down entering record territory and Brexit uncertainty likely to bring volatility, now could be a good time to bet on further upside for gold.
The precious metal has enjoyed a consistent rally since the Summer lows and there could well be further upside from here.
Morning Report: 07.00 London
The dollar index remains in a restricted trading range this morning as the US governmental shut down becomes the longest such deadlock in history. The crux of the matter remains payment for Trump’s wall across the Mexican border.
This and disappointing China export data has pushed money into the perceived safety of the Japanese yen, with the USD/JPY reversing Friday’s gains and testing the support level at 108.00.
Other yen pairs are following suit, with the AUD/JPY reversing after failing to break the 78.00 level. The GBP/JPY outperformed on Friday, ending the week on a positive note, with moderate falls this morning.
The EUR/JPY fell back last week, dropping for three straight days from the 125.00 support level. The EUR/GBP reversed heavily breaking the 2019 lows with small gains this morning. There are growing hopes of some sort of accommodation to help Theresa May from the EU side in the face of a likely deal rejection this week. The EUR/USD is making small gains after two days of losses.
Other dollar pairs are mixed, with the GBP/USD experiencing moderate losses following Friday’s rally. The AUD/USD is underperforming following the disappointing China data, dropping below the 0.7200 level.
The USD/CAD is rallying for the third day in a row as the dollar regains its poise. Meanwhile, the USD/CHF is reversing some of last week’s gains, but movements are slight so far.
Coming up today
There are no moderate to large ticket items today, though Brexit rumours will no doubt steer the pound’s movements.
Trade Idea
With the US government shut down entering record territory and Brexit uncertainty likely to bring volatility, now could be a good time to bet on further upside for gold.
The precious metal has enjoyed a consistent rally since the Summer lows and there could well be further upside from here.
A good way to play this is a HIGHER trade predicting that gold closes above $1300 in 21 days for a potential return of 157%.
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