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Dollar Dominates as Euro Slumps10 August 2018 by Dave Evans

Morning Report: 07.00 London

The euro is set for a second day of heavy selling and is already down 0.57% today against the US dollar. The main driver is the ECB’s concerns over European banking exposure to the collapsing Turkish Lira. The EUR/GBP is reversing from the highs, following on from yesterday, but is still well up for the week. The EUR/JPY and EUR/CHF are also posting further losses as the slump from mid-July continues.

While the pound is performing well against the euro, it is still losing ground against the dollar, with the GBP/USD slipping further to test 1.2800. The GBP/JPY is also struggling, down to test 142.00.

The Aussie dollar has been out-performing but is also struggling against the weight of dollar and safe haven demand. The AUD/USD is set for its lowest closing levels since July. The AUD/JPY is also in the midst of a severe three day losing run.

The USD/JPY itself is flat, with respective currencies balancing each other out. The yen is generally in demand as traders seek out safe havens.

The USD/CHF is making gains as traders lose interest in the Swissy’s safe haven status. The USD/CAD is posting a similar trend.

Coming up today

Today we have UK GDP, manufacturing production, goods trade balance and preliminary business investment all at 09.30.

Canadian employment change and the unemployment rate are at 13.30.

At the same time, we get US CPI data.

Trade Idea

The EUR/USD is under pressure this morning, but we could well see some waterfall selling as the pressure on world markets intensifies.

August 10th, 2018: Dollar Dominates as Euro Slumps

A good way to play this is a ONE TOUCH trade predicting that the EUR/USD touches 1.1300 within the next 14 days for a potential return of 148%.

August 10th, 2018: Dollar Dominates as Euro Slumps