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Mar 16th, 2018: Dollar Retreats After Thursday Surge

Morning Report: 07.00 London

This morning, the US dollar is on the retreat after an Empire State inspired surge yesterday. The dollar index hit a weekly high yesterday, but already half of those gains have been lost this morning as traders fret over US political uncertainty.

The dollar pairs are mirroring these moves with losses yesterday and gains so far this morning. The AUD/USD has been at the extreme end of these moves, while the NZD/USD is bucking this trend, extending yesterday’s losses.

The yen pairs are on the back foot as markets seek out the safe havens in light of US political uncertainty. The USD/JPY is at its lowest level for a week, while the EUR/JPY is making its third day of significant losses. The AUD/JPY is also furthering its recent bear move.

The USD/CAD is holding at the highs above 1.3000 as the US dollar takes control and the Canadian dollar weakens on oil prices.

Coming up today

Coming up today, we have European final CPI at 10.00.

At 12.30, we have US building permits and housing starts.

Canadian foreign securities purchase and manufacturing sales are released at the same time.

US capacity utilisation rate and industrial production are released at 13.30.

At 14.00, we have preliminary UoM consumer sentiment.

Trade Idea

The yen remains in firm demand as Trumps hire and fire tactics continue to cause disruption in US markets.

In this way, it could pay to keep with the short and medium term trend.

Mar 16th, 2018: Dollar Retreats After Thursday Surge

A good way to play this is a LOWER trade predicting that the USD/JPY will close below 105.00 in 14 days for a potential return of 161%.

Mar 16th, 2018: Dollar Retreats After Thursday Surge