• English

Daily Report

Feb 22nd, 2018: Dollar Rebounds on Rate Hike Prospects

Morning Report: 07.00 London

This morning, the dollar index is on the rise again, marking a potential five straight days of gains for the Greenback. The latest move came after last night’s FOMC meeting minutes revealed a Fed leading to further rate hikes sooner than expected.

Dollar pairs sunk on the news, with the AUD/USD now down 1.35% on the week after heavy losses yesterday. The NZD/USD followed suit.

The pound gave back some of the week’s earlier gains after mixed data showed that the unemployment rate increased to 4.4%. The EUR/GBP saw some volatile trading yesterday, but ultimately ended higher, with further gains this morning as money flows back into the euro.

Some of the biggest recent gains for the dollar have come against the Swiss Franc, with the USD/CHF rallying for each of the last five sessions.

Yen pairs are mixed, with the EUR/JPY and GBP/JPY dropping off, while the USD/JPY and AUD/JPY remain unchanged.

Coming up today

Coming up today, we have German Ifo business climate at 09.00.

At 09.30, we get UK second estimate GDP and preliminary business investment.

The ECB monetary policy meeting accounts are released at 12.30.

Canadian core retail sales are at 13.30, alongside US unemployment claims.

US crude oil inventories are at 16.00.

FOMC member Bostic speaks at 17.10.

Trade Idea

All yen pairs have been pressured of late, but the AUD/JPY is the most vulnerable given its status as a pair traders like to dump in a crisis (and buy in times of growth).

Feb 22nd, 2018: Dollar Rebounds on Rate Hike Prospects

A good way to play this is a LOWER trade predicting that the AUD/JPY will close BELOW 83.50 in 14 days for a potential return of 138%.

Feb 22nd, 2018: Dollar Rebounds on Rate Hike Prospects