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Dollar Rebounds on Hawkish Fed09 November 2018 by Dave Evans

Morning Report: 07.00 London

The dollar in control once again after yesterday’s Fed meeting provided more hawkish guidance on future rates. The dollar index rebounded with follow on buying this morning.

Dollar pairs remain on the back foot, with the EUR/USD slipping back towards the lows. The GBP/USD is also following up yesterday’s losses, but these come from a position of strength, with the November lows some way off. The EUR/GBP continues to trickle lower, with support at 0.8700 now breached.

The AUD/USD is also experiencing follow-on selling, after failing to break 0.7300 at the second time of asking.

Weak oil prices and the strong Greenback have helped the USD/CAD to climb back towards the September highs.

After flirting with the parity line, the USD/CHF is climbing once again, looking set to break the 1.0100 level.

After mixed trading yesterday, the yen pairs are uniformly on the back foot. The EUR/JPY and GBP/JPY are building experiencing follow-on selling, while the USD/JPY reverses yesterday’s gains.

Coming up today

At 09.30 this morning, we have UK GDP at 09.30, released alongside manufacturing production, preliminary GDP and other minor releases.

At 13.30,we have US PPI.

FOMC member Quarles speaks at 14.05.

Preliminary UoM Consumer Sentiment is at 15.00.

Trade Idea

Momentum remains with the USD/CHF as it flips back towards the highs. With the need for a Swissy safe haven diminishing, we could see further buying pressure from here.

Nov 9th 2018: Dollar Rebounds on Hawkish Fed

A good way to play this is a HIGHER trade predicting that the USD/CHF will close above 1.0100 in 14 days could return 142%.

Nov 9th 2018: Dollar Rebounds on Hawkish Fed