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Daily Report

Dollar Firm after Boxing Day Rally27 December 2018 by Dave Evans

Morning Report: 07.00 London

The US dollar index has a positive bias, building on yesterday’s gains. Despite this strength, the dollar and other currencies have failed to match the powerful rally seen on US markets yesterday as the S&P 500 staged one if its biggest single day gains in a decade.

The EUR/USD is on the rise after losses yesterday, with the GBP/USD following suit. The EUR/GBP is rising after a big pre-Christmas drop.

By contrast, the AUD/USD is falling heavily today, testing the support line below 0.7050, reversing all of yesterday’s gains.

The dollar is falling against the Swiss franc after rallying hard yesterday. The USD/CHF remains stuck in a range.

The USD/CAD is testing the highs once again though, with the 1.3600 level being breached once again.

The dollar is falling back against the yen as are most currencies. The USD/JPY is reversing half of yesterday’s gains. Meanwhile, the EUR/JPY and GBP/JPY are also on the back foot. The AUD/JPY is suffering the worse falls though.

Coming up today

Today we have US CB Consumer Confidence at 15.00.

Trade Idea

The AUD/USD is under pressure and this morning’s weakness is proving no exception to recent trends.

Dollar Firm after Boxing Day Rally

With the dollar still on top, a good way to play the current situation is a LOWER trade predicting that the AUD/USD will close below 0.7000 in 14 days for a potential return of 166%.

Dollar Firm after Boxing Day Rally