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Dollar Pressured as Trump Attacks Fed18 December 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index remains weak as traders weigh up Trumps latest attack on the Fed ahead of a likely 0.25% rate hike this week. The dollar is down for the second day this week, helping the dollar pairs to lift higher.

The AUD/USD is recovering, with the 0.7170 level acting as support.

The GBP/USD is lifting for the second straight day, though Friday’s losses are still to be overcome. By contrast, the EUR/USD is on the back foot, with the EUR/GBP falling back from the 0.9000 level.

The USD/CAD is pulling back from the highs as the Canadian dollar recovers some ground from the recent bull run.

The USD/CHF is rising slightly though as traders shun the need for the Swissy’s safe haven.

Yen pairs are on the back foot, with the USD/JPY falling for the third day in a row to test support at 112.50.

The EUR/JPY is down for the third day in a row following on from Friday’s significant loss. The GBP/JPY is struggling and maintaining its recent bear run. Meanwhile, the AUD/JPY is poised for a test of support at 81.00.

Coming up today

At 09.00, we have German Ifo business climate.

US building permits and housing starts are at 13.30.

Trade Idea

The GBP/JPY remains weak and with current demand for the yen, there could be further downside from here.

PM May is facing a no confidence vote, while Brexit uncertainty plagues the British economy.

Dollar Pressured as Trump Attacks Fed

A good way to play this is a LOWER trade predicting that the GBP/JPY will close below 141.50 in 21 days for a potential return of 135%.

Dollar Pressured as Trump Attacks Fed