• English

Daily Report

Dollar Recovers Despite Manufacturing Dip08 January 2019 by Dave Evans

Morning Report: 07.00 London

The dollar index is steadier this morning, as the Greenback rebounds from support levels and forces major dollar pairs to reverse some of yesterday’s gains.

There were small gains for the AUD/USD yesterday, but these have mostly been reversed this morning on poor trade balance figures. The GBP/USD and EUR/USD are both reversing, though the former is holding its ground better. The EUR/GBP is trending lower and set to test the 0.8950 level.

The USD/CHF is rising off support around the 0.9800 level as the dollar slowly gives ground to the Swissy.

The Canadian dollar continues to impress, with the USD/CAD falling further below Monday’s opening gap.

Yen pairs are on the rise, helped by the flow of money from the yen into the dollar. Gains are small so far, but the USD/JPY and GBP/JPY are extending recent gains, while the EUR/JPY falters.

Coming up today

Today we have Canadian trade balance at 13.30.

Trade Idea

Despite recent dollar weakness, the EUR/USD has failed to break out of its trading range. The euro is facing economic and political uncertainty not least with Brexit, which could bring further downside for the EUR/USD.

Dollar Recovers Despite Manufacturing Dip

A good way to play this is a LOWER trade predicting that the EUR/USD will close below 1.1400 in 14 days for a potential return of 163%.

Dollar Recovers Despite Manufacturing Dip