The US dollar is holding at the highs after the ECB gave a dovish perspective on its QE exit and the BoJ opted to keep rates on hold. The US increasingly appears to be going its own way, setting the dollar on a path of strength.
Dollar pairs are generally unchanged today, but the damage was done yesterday with most pairs experiencing one of their worst days of 2018. The AUD/USD slumped towards the 2018 lows, while the EUR/USD reversed pretty much all of its June gains in one day. The GBP/USD beat a similar path though held up much better than the euro, as reflected in the EUR/GBP’s drop yesterday.
Elsewhere, there USD/CHF rose sharply and the USD/CAD is trading at 2018 highs above 1.3100.
The yen pairs have a positive bias this morning but most were in negative territory yesterday with the exception of the USD/JPY.
Coming up today
Today we have European CPI at 10.00.
Canadian foreign securities purchases and manufacturing sales are at 13.30.
US Empire State Manufacturing Index is at 13.30.
US Capacity Utilisation Rate and Industrial Production is at 14.15.
Finally, we get preliminary consumer sentiment at 15.00.
Trade Idea
The euro plunged against most currencies yesterday, but its was the falls against the Swiss franc that could be of most interest. The start of June has seen a gradual recovery in the EUR/CHF, but after yesterday we could see a return to the 2018 lows.
Morning Report: 07.00 London
The US dollar is holding at the highs after the ECB gave a dovish perspective on its QE exit and the BoJ opted to keep rates on hold. The US increasingly appears to be going its own way, setting the dollar on a path of strength.
Dollar pairs are generally unchanged today, but the damage was done yesterday with most pairs experiencing one of their worst days of 2018. The AUD/USD slumped towards the 2018 lows, while the EUR/USD reversed pretty much all of its June gains in one day. The GBP/USD beat a similar path though held up much better than the euro, as reflected in the EUR/GBP’s drop yesterday.
Elsewhere, there USD/CHF rose sharply and the USD/CAD is trading at 2018 highs above 1.3100.
The yen pairs have a positive bias this morning but most were in negative territory yesterday with the exception of the USD/JPY.
Coming up today
Today we have European CPI at 10.00.
Canadian foreign securities purchases and manufacturing sales are at 13.30.
US Empire State Manufacturing Index is at 13.30.
US Capacity Utilisation Rate and Industrial Production is at 14.15.
Finally, we get preliminary consumer sentiment at 15.00.
Trade Idea
The euro plunged against most currencies yesterday, but its was the falls against the Swiss franc that could be of most interest. The start of June has seen a gradual recovery in the EUR/CHF, but after yesterday we could see a return to the 2018 lows.
A good way to play this is a ONE TOUCH trade predicting that the EUR/ CHF will TOUCH 1.1400 within the next 14 days for a potential return of 139%.
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