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Dollar Retreats as Pound Rallies01 November 2018 by Dave Evans

Morning Report: 07.00 London

This morning, dollar interest is waning despite ADP Payrolls coming in above estimates yesterday. This comes as the S&P 500 recovered by 1% last night amid a generate return to risk appetite bias. Even the USD/JPY is on the back foot despite overall yen weakness.

The Australian dollar is the big winner so far, with the AUD/USD rallying 0.75% and rising so far this morning after trade balance came in well above estimates. The AUD/JPY is also rising and making back all of yesterday’s gains.

The GBP/USD is now firmly positive for the week and is building on yesterday’s impressive gains on hopes for a Brexit services deal. The EUR/GBP has slumped for the last two days, erasing much of last week’s gains. The GBP/JPY is also on the rise, nudging above yesterday’s highs.

The EUR/USD is rallying, but lagging its peers and has only just made good yesterday’s losses.

The Swiss franc is re-exerting its dominance, with the USD/CHF reversing most of yesterday’s losses.

The Canadian dollar is also performing well, with the USD/CAD making good half of yesterday’s gains following yesterday’s better than expected Canadian GDP.

Coming up today

Today we have UK Manufacturing PMI at 09.30.

12.00, we get the UK BOE monetary policy summary, bank rate votes and inflation report. Carney speaks at 12.30.

ISM manufacturing PMI is at 14.00.

Trade Idea

The Aussie is the power currency right now, while the euro struggles, making the EUR/AUD one to watch for further down side.

Nov 1st 2018: Dollar Retreats as Pound Rallies

A good way to play this is a LOWER trade predicting that the EUR/AUD will close below 1.5800 in 14 days for a potential return of 177%.

Nov 1st 2018: Dollar Retreats as Pound Rallies