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Dollar Rebound Despite Trump28 August 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is staging a small rebound after yesterday’s hefty sell-off. Yesterday’s NAFTA announcement helped markets generally, but Trump’s devaluation rhetoric kept a lid on dollar advances.

The EUR/USD is slipping below the 1.1700 level after gapping higher yesterday. These gains are outpacing the GBP/USD which has lost most of yesterday’s advances and indeed most of last week’s. The EUR/GBP continues to advance, with 0.9100 the next likely target.

The AUD/USD continues to struggle, reversing all of yesterday’s gap higher as markets remain unimpressed with the political uncertainty.

The USD/CAD is higher after dropping below 1.3000 yesterday, while the USD/CHF is trading in a similar manner, testing the 0.9800 support level.

Yen pairs are mixed, with the GBP/JPY reversing slightly, while the EUR/ JPY is unchanged, continuing its winning streak. The USD/JPY is higher after two days of losses, while the AUD/JPY is reversing again.

Coming up today

Today we have CB Consumer Confidence at 15.00.

Trade Idea

The pound continues to weaken, while the dollar index remains resilient against Trump’s devaluation rhetoric.

August 28th, 2018: Dollar Rebound Despite Trump

A good way to play this is a LOWER trade predicting that the GBP/USD will close below 1.2800 in 14 days for a potential return of 185%.

August 28th, 2018: Dollar Rebound Despite Trump