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Daily Report

Dollar Recovers Despite Trade Tensions19 November 2018 by Dave Evans

Morning Report: 07.00 London

The US Dollar index is slightly firmer after heavy selling last week on trade tensions and a return to risk appetite across Europe.

The AUD/USD has gapped lower after popping above 0.73100 on Friday. Traders will be eyeing this line to see if former resistance will become support.

The EUR/USD is making small losses after four days over strong recovery gains that saw the euro finish the week higher on Friday and above the 1.1300 support level once again.

The pound is unchanged after stabilising above the 1.2800 level on Friday, a support line which appears to be key in the near term. The EUR/GBP gapped lower at the open, creating the first negative pressure for three sessions after Thursday’s monster rally on the back off mass ministerial resignations.

The USD/CHF is holding on to the parity line – just, after heavy selling on Friday.

Yen pairs are mostly unchanged, following days of losses for the dollar against the yen.

Coming up today

There are no planned economic items of note today

Trade Idea

The GBP/JPY was hit hard last week as Brexit fears mount, but there is more downside risk as a re-negotiation and parliamentary vote loom.

Nov 19th 2018: Dollar Recovers Despite Trade Tensions

A good way to play this is a LOWER trade predicting that the GBP/JPY will close below 144.50 in 14 days for a potential return of 114%.

Nov 19th 2018: Dollar Recovers Despite Trade Tensions