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Daily Report

Brace for Inaction16 April 2019 by Dave Evans

Morning Report: 07.00 London

The US dollar index is back on the rise after ending unchanged yesterday. Overall currency movements are subdued as central banks stand pat and opt out of previously mooted rate hikes.

The AUD/USD is lower though and trading below 0.7150 amid speculation that the RBA could cut rates this year. The AUD/JPY has also slipped and is testing support around 80.00.

The EUR/USD is unchanged, but holding above the 1.1300 level, while the GBP/USD is lower and trading below 1.3100 ahead of today’s average earning’s data. The EUR/GBP is back on the rise, but trading below the resistance line at 0.8650.

The USD/CAD is higher again, with resistance overhead around 1.3400. The USD/CHF continues to hold above the parity line however, with the support line of 1.0050 holding for now.

The USD/JPY is lower slightly and trading below resistance at 112.00. The GBP/USD is also lower and reversing yesterday’s gains. By contrast the EUR/JPY remains unchanged.

Gold continues to slip, losing ground for the fourth day in a row.

Coming up today

UK average earnings are at 08.30, with the unemployment rate released at the same time.

German ZEW economic sentiment is at 09.00.

At 12.30, we get Canadian manufacturing sales.

Trade Idea

Aside from the opening day collapse, 2019’s trend has been good for the USD/JPY. The dollar has gradually strengthened, while safe haven demand for the yen has diminished.

Brace for Inaction

There could be further upside from here and a good way to play this is a HIGHER trade predicting that the pair will close above 112.25 in 14 days for a potential return of 165%.

Brace for Inaction