May 28th 2019: Dollar Extends Gains as Europe Wobbles
May 28, 2019 7:11 am
Morning Report: 07.00 London
This morning, the dollar index is extending yesterday’s gains as Trump ratchets up the threats of interventions in the US-China trade war. At the same time, the euro is struggling in the face of a messy European parliament election result.
The EUR/USD is lower for the second straight day and trading below the 1.1200 level. The GBP/USD is also struggling, but the is so far limited fallout from the recent Brexit leaning European election result. The EUR/GBP is actually on the back foot this morning, following yesterday’s gains that put the pair back towards the highs.
The AUD/USD is higher though and erasing yesterday’s losses.
The dollar is extending yesterday’s gains made against the Swiss franc and the USD/CHF is pushing higher off the 1.0000 support level.
Yen pairs are mixed, with the USD/JPY rallying above 1.0950 for the second straight day. The EUR/JPY and GBP/JPY are struggling though, with the latter still poised to challenge the lows. By contrast, the AUD/JPY is performing well and building on yesterday’s opening gap higher.
Coming up today
US CB Consumer Confidence is the only upper tier item of note in today’s main session.
The RBNZ financial stability report is at 21.00, with RBNZ Governor Orr speaking at the same time.
Trade Idea
The GBP/JPY is vulnerable after the Brexit party’s victory muddied the waters.
Morning Report: 07.00 London
This morning, the dollar index is extending yesterday’s gains as Trump ratchets up the threats of interventions in the US-China trade war. At the same time, the euro is struggling in the face of a messy European parliament election result.
The EUR/USD is lower for the second straight day and trading below the 1.1200 level. The GBP/USD is also struggling, but the is so far limited fallout from the recent Brexit leaning European election result. The EUR/GBP is actually on the back foot this morning, following yesterday’s gains that put the pair back towards the highs.
The AUD/USD is higher though and erasing yesterday’s losses.
The dollar is extending yesterday’s gains made against the Swiss franc and the USD/CHF is pushing higher off the 1.0000 support level.
Yen pairs are mixed, with the USD/JPY rallying above 1.0950 for the second straight day. The EUR/JPY and GBP/JPY are struggling though, with the latter still poised to challenge the lows. By contrast, the AUD/JPY is performing well and building on yesterday’s opening gap higher.
Coming up today
US CB Consumer Confidence is the only upper tier item of note in today’s main session.
The RBNZ financial stability report is at 21.00, with RBNZ Governor Orr speaking at the same time.
Trade Idea
The GBP/JPY is vulnerable after the Brexit party’s victory muddied the waters.
The risk is still to the downside and a good way to play this is a LOWER trade predicting that the GBP/JPY closes below 138.00 in 14 days for a potential return of 171%.
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