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Daily Report

Dollar Dips Further as Confidence Grows09 April 2019 by Dave Evans

Morning Report: 07.00 London

This morning, the US dollar index continues to slip as world markets shun the need for safer havens amid a continued stock market rally. The dollar index is posting a day of follow-on losses, helping dollar pairs to gain.

The AUD/USD has reversed yesterday’s early weakness and is pushing to test the March highs today, though remains largely rangebound. The EUR/USD is also performing well, adding to yesterday’s gains that pushed the pair through the 1.1250 level. The pound is lagging other dollar pairs over two days, but is also making gains, with the support level around 1.3000 holding.

The EUR/GBP is slipping back for the first session in four, with the pair mostly stuck in the same March range limits. The EUR/CHF continues to climb however as the Swiss franc slips back as traders turn away from safe harbours.

The biggest losses for the US dollar came against the Canadian dollar yesterday, as the USD/CAD slumped to just above 1.3300. There is shallow selling this morning as traders eye a break of 1.3300.

The USD/CHF is below 1.0000 once again after failing to break through on Friday.

Yen pairs are mixed, with the USD/JPY lower for the second straight day, firmly halting the rally that has been running since the end of March. The AUD/JPY continues to climb however, with the highs above 79.80 a clear target. The EUR/JPY is posting small losses, while the GBP/JPY is posting small gains.

Coming up today

FOMC member Quarles and Clarida speak at 21.00 and 22.45 respectively.

Trade Idea

While the dollar is weak, the USD/CHF is weaker as traders flex their risk taking muscles. The USD/CHF failed to break 1.0000 once again and now we could see a quick snap lower as we have done around previous parity line failures.

Dollar Dips Further as Confidence Grows

A good way to play this is a ONE TOUCH trade predicting that the USD/CHF will touch 0.9900 within 14 days.

Dollar Dips Further as Confidence Grows