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Dollar Recovers on Powell Testimony27 February 2019 by Dave Evans

Morning Report: 07.00 London

The dollar index has regained some of the ground lost yesterday as traders reflect on yesterday’s testimony from FOMC chair Powell.

The pound is slipping back slightly after making significant gains yesterday as a Brexit delay (and possible avoidance) inches closer to reality. The GBP/USD is giving back some of yesterday’s gains after smashing through the 1.3200 level yesterday. The EUR/GBP is holding yesterday’s drop below the 0.8600 level, while the GBP/JPY is holding above 146.00.

Other dollar pairs are on the back foot, with the AUD/USD slightly lower after failing to break the 0.7200 level again yesterday. The EUR/USD is experiencing more significant selling though after failing at the 1.1400 level.

The USD/CAD is unchanged, while the USD/CHF is slightly higher and holding the 1.0000 level.

The USD/JPY reversed ground yesterday after failing at the 111.00 level. The AUD/JPY and EUR/JPY are lower for the second straight day.

Coming up today

Today we have Canadian CPI at 13.30.

US factory orders come in at 15.00, with crude oil inventories at 15.30.

Trade Idea

The GBP/JPY has the Brexit (avoidance) wind behind its sails, helping the pair to hold above 146.00. There could be further gains from here though with the highs above 149.50 a likely target.

Dollar Recovers on Powell Testimony

A good way to play this is a ONE TOUCH trade predicting that the GBP/JPY will touch 149.50 within the next 14 days for a potential return of 146%.

Dollar Recovers on Powell Testimony