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Dollar Retreats Following Brief Rally11 January 2019 by Dave Evans

Morning Report: 07.00 London

The US dollar index is reversing most of yesterday’s rally. Dollar pairs are back on the rise after some reversals yesterday.

The EUR/USD was hit hard yesterday, falling to 1.1500 with moderate gains this morning. The GBP/USD is lagging this morning though after failing at the 1.2800 level yesterday. The AUD/USD is extending recent momentum though, with the pair pushing through the 0.7200 level.

The USD/CHF took full advantage of dollar strength yesterday, erasing the bulk of the week’s losses with a solid rally and only small losses this morning. The Swiss franc sunk yesterday as demand for safe havens diminished amid trade talk hopes. The EUR/CHF jumped higher yesterday, with follow on gains this morning.

The USD/CAD is extending the 2019 bear swing, testing the 1.3200 level following a measured rally yesterday.

The yen pairs are showing small gains, with the AUD/JPY leading the back and breaking fresh highs for 2019. There are small gains across the board for other yen pairs including the EUR/JPY, GBP/JPY and USD/JPY.

Coming up today

UK GDP and manufacturing production are at 09.30.

US CPI is released at 13.30.

Trade Idea

The AUD/USD continues to outperform its peers, helped by better than expected retail sales this morning. As the dollar continues to slip, there could be further upside for the AUD/USD.

Dollar Retreats Following Brief Rally

A good way to play this is a HIGHER trade predicting that the AUD/USD will close above 0.7300 in 14 days for a potential return of 250%.

Dollar Retreats Following Brief Rally