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Dollar Hits its Stride06 March 2019 by Dave Evans

Morning Report: 07.00 London

The US dollar index is hitting its stride, posting gains for the sixth straight day. The February highs are in sight, forcing the dollar pairs lower.

The AUD/USD is hardest hit, plunging below 0.7050 this morning. The EUR/USD is also struggling, falling for its sixth straight day and looking to test support around 1.1300. The pound’s out-performance has proven short lived, falling for the fifth straight day from the highs around 1.3300 to just above 1.3100 as Brexit uncertainty begins to bite again. The EUR/GBP is on the rise above 0.8600 as the pound bows to euro pressure.

The USD/CAD is continuing its rally as political uncertainty weighs on the Canadian dollar. Even the USD/CHF managed to break its impasse around 1.0000, rallying to 1.0050 yesterday with follow on buying this morning.

Yen pairs have a negative bias though, with even the USD/JPY struggling to lift above support around 112.00. The AUD/JPY has dropped below 79.00, with the EUR/JPY nudging lower for the third straight day. The GBP/JPY is following suit.

Coming up today

US ADP non-farm employment change is at 13.15.

Canadian trade balance is at 13.30.

At 15.00, we get the BOC rate statement and overnight rate, combined with Ivey PMI.

FOMC member Williams speaks at 17.00, with MPC member Saunders speaking at 17.30.

Trade Idea

The Australian dollar has been hit hard by the twin threats of dollar strength and China weakness.

Dollar Hits its Stride

Further downside could be on the cards and a good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7000 in 14 days for a potential return of 161%.

Dollar Hits its Stride