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Feb 16th, 2018: Dollar Slides to fresh 2018 Lows

Morning Report: 07.00 London

This morning, the US dollar index is on the slide again, threatening fresh 2018 lows as last week’s rate hike excitement subsides. Stock markets are riding to the highs again by contrast.

The biggest winner this morning is again the Japanese yen, with the USD/JPY down 2.8% on the week and over 3% on the month to date.

Yen pairs continue to struggle as a consequence, but this is now just keeping a lid on gains rather than pushing the yen pairs lower. The AUD/JPY and EUR/JPY are maintaining their downslide, but the pace of change is easing.

Dollar pairs continue to rally by contrast, with the NZD/USD out-performing and powering higher. The pair is up nearly 2.5% on the week.

The EUR/USD continues to perform well on the week, despite yesterday’s wobble which saw the EUR/GBP reverse for the first time in a while.

Meanwhile, gold is set for a fresh 2018 closing high.

Coming up today

Coming up today, we have UK retail sales at 09.30.

This is followed by Canadian foreign securities purchases and manufacturing sales at 13.30.

Also at this time we have US building permits and housing starts alongside import prices.

US preliminary UoM consumer sentiment is at 15.00.

Trade Idea

The USD/CHF has followed the USD/JPY as the dollar slides and investors keep their appetite for the Swissy’s safe haven status.

With these twin trends, there is room for further downside.

Feb 16th, 2018: Dollar Slides to fresh 2018 Lows

A good way to play this is a LOWER trade predicting that the USD/CHF closes below 0.9100 in 14 days for a potential return of 200%.

Feb 16th, 2018: Dollar Slides to fresh 2018 Lows