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Dollar Recovers After Yen Push21 December 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is on the rise this morning after heavy selling yesterday. The biggest counter move is against the yen which surged on Thursday as markets took fright at a range of global risks and took comfort in the yen. The USD/JPY plunged below 111.00 yesterday, but is recovering to test the 111.50 level.

Other yen pairs are recovering, with the EUR/JPY climbing back above support at 127.50 after yesterday’s drop. The GBP/JPY also attempting a recovery after dropping to its lowest levels since the Summer.

Dollar pairs are generally on the back foot, with the EUR/USD reversing the week’s gains to test 1.1450 from the upside. The GBP/USD remains depressed near the lows with moderate losses this morning. The EUR/GBP remains close to the 0.9050 level as the euro dominates the pound.

The USD/CAD continues to advance, with the pair trading above 1.35000 this morning as oil prices continue their decline after gapping below $60 at the start of the week.

Some of the biggest moves were seen on the USD/CHF which broke out the recent trading range to plunge below 0.9880.

Coming up today

Today, we have UK current account data at 09.30, released alongside final GDP and public sector net borrowing.

Canadian retail sales are at 13.30, with GDP at the same time.

Core durable goods orders are at 13.30, also released at final GDP.

Canadian BOC business outlook survey is at 15.00.

US core PCE is also at 15.00, released alongside US personal spending and revised UoM consumer sentiment.

Trade Idea

The AUD/JPY is under severe pressure as the Aussie feels the strain of Chinese economic pressure. Meanwhile the yen is in demand is investors lean towards safe havens.

Dollar Recovers After Yen Push

A good way to play this is a LOWER trade predicting that the AUD/JPY will close below 78.00 within 14 days for a potential return of 265%.

Dollar Recovers After Yen Push