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Daily Report

Dollar Slips17 May 2018 by Dave Evans

Morning Report: 07.00 London

This morning, the US dollar remains on the back foot following poor economic data yesterday. Housing starts and Capacity Utilization Rate both dropped below expectations, while global tensions eased. The US dollar index has dropped off the highs for the second straight highs.

By contrast the British pound enjoyed strong interest, out performing the likes of the euro yesterday on reports that the UK will stay tied to the EU customs union beyond 2021. The GBP/USD lifted off the highs, while the EUR/GBP dropped as the pound made ground against the euro. The GBP/JPY extended its winning run, though the pound’s move is running out of steam this morning.

Other dollar pairs are enjoying gains this morning, with the EUR/USD climbing after stalling yesterday. The AUD/USD is enjoying its second straight day of gains despite mixed employment data.

Yen pairs are mixed, with the USD/JPY lower and the EUR/JPY slipping lower.

The Canadian dollar continues to out-perform, with the USD/CAD falling for the second straight day. Oil prices continue to make gains.

Coming up today

Canadian foreign securities purchases are at 13.30.

At the same time, we have US Philly Fed manufacturing index and unemployment claims.

MPC member Haldane speaks at 17.00

Trade Idea

After a period of gains, the EUR/CHF has started to turn significantly. The euro continues to feel the pressure, while the Swiss franc gains stability.

May 17th, 2018: Dollar Slips

A good way to play this is a LOWER trade predicting that the EUR/CHF will close below 1.1800 in 21 days for a potential return of 125%.

May 17th, 2018: Dollar Slips