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Dollar Holds at Highs12 February 2019 by Dave Evans

Morning Report: 07.00 London

The US dollar index is pausing at the highs this morning after reaching six week highs yesterday. Trade talks with the US and China have resumed, helping US markets to push higher yesterday, with consolidation this morning.

The EUR/USD is pausing at the lows after plunging through the 1.1300 level yesterday. The GBP/USD also suffered heavy selling as UK GDP fell below estimates yesterday. The GBP/USD is unchanged this morning, while the EUR/GBP makes small gains, building on yesterday’s pound under-performance.

The AUD/USD is out-performing, lifting off the 0.7050 level to erase most of yesterday’s losses.

The USD/CAD is reversing half of yesterday’s gains, falling below the troublesome 1.3300 level.

Meanwhile, the USD/CHF saw the biggest gains to test the 1.0050 level from below. There were also gains for the EUR/CHF as the Swissy slipped back.

The USD/JPY smashed through the 110.00 level to trade above 110.50 this morning. The EUR/JPY is making follow on gains, while the GBP/JPY is just about holding the 142.00 level.

Coming up today

Today, we have Buba President Weidmann speaking at 08.20.

Bank of England governor Carney speaks at 13.00.

US Fed Chair Powell speaks at 17.45.

Trade Idea

The US dollar is the power currency right now, helping the USD/JPY to push through the 110.00 level and keep the week’s momentum up.

Dollar Holds at Highs

There could be further upside from here and a good way to play this is a HIGHER trade predicting that the USD/JPY will close above 111.00 in 14 days for a potential return of 155%.

Dollar Holds at Highs