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Daily Report

BOE Reset Expectations11 May 2018 by Dave Evans

Morning Report: 07.00 London

This morning, the British pound remains under pressure following yesterday’s BOE meeting. The MPC downgraded growth and inflation, with expectations for the next rate increase inching into the future. The GBP/USD dropped in volatile trading, with small gains this morning. Meanwhile, the EUR/GBP shot higher as the euro holds its ground. The GBP/JPY extended its losing run seen since mid May.

Other dollar pairs are performing well, with small gains this morning building on the back of yesterday’s hefty rally for the likes of the AUD/USD and EUR/USD.

The dollar index remains on the back foot, with a potential reversal on the cards.

The USD/CAD remains on a losing run, with the Canadian dollar gathering momentum as oil prices spike higher.

Yen pairs are generally unchanged this morning, with the USD/JPY struggling to pass through the 110.00 level.

Coming up today

Today we have Canadian employment change at 13.30, released alongside the employment rate.

Canadian Government council member Wilkins speaks at 14.10.

ECB president Draghi speaks at 14.15.

Preliminary UoM consumer sentiment is at 15.00.

Trade Idea

The Aussie is holding up well, while the euro continues to falter. As such the EUR/AUD looks attractive for further downside bets.

May 11th, 2018: BOE Reset Expectations

A good way to play this is a LOWER trade predicting that the EUR/AUD will close below 1.5800 in 14 days for a potential return of 100%.

May 11th, 2018: BOE Reset Expectations