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Aussie Stumbles, Pound Holds Gains30 August 2018 by Dave Evans

Morning Report: 07.00 London

The New Zealand and Australian dollars are the main movers, with the NZD/USD down 0.92% and the AUD/USD down 0.42%. The Aussie is dropping after poorer than expected CAPEX data this morning.

The pound is holding yesterday’s gains made after the EU’s Michel Barnier proclaimed a special deal for the UK, “better than any other non-EU country”. The pound remains one of the top movers for the week, with the GBP/JPY up 1.64%. The GBP/USD is now above 1.3000, with the EUR/GBP extending yesterday’s losses to trade below 0.90000.

The euro is lagging as the Turkish Lira slips even lower. The EUR/JPY is dipping back to 130.50, while the EUR/USD reverses yesterday’s gains. Some of the biggest gains have been seen on the EUR/CHF as the Swissy attracts safe haven interest over the border.

The USD/CHF is set to test the 0.9700 level with small gains this morning following hefty losses yesterday.

The USD/CAD is also making minor gains so far today, reversing yesterday’s losses on the back of lower than expected oil price inventories.

Coming up today

Today we have Spanish Flash CPI at 08.00

Canadian GDP is at 13.30.

Core US PCE price index is also at 13.30, with US personal spending at the same time.

Buba President Weidmann speaks at 18.30.

Trade Idea

The Swiss franc continues to find buyers worried about the EU’s exposure to Turkey. There’s still room for more downside from here though.

August 30th, 2018: Aussie Stumbles, Pound Holds Gains

A good way to play this is a LOWER trade predicting that the USD/CHF will close below 0.9650 in 14 days for a potential return of 179%.

August 30th, 2018: Aussie Stumbles, Pound Holds Gains