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Dollar Slips as Risk Appetite Increases28 January 2019 by Dave Evans

Morning Report: 07.00 London

This morning, the dollar index is selling off further, following Friday’s slump which saw a switch to risk taking on the reopening of the US government departments and a resumption of US-China trade talks.

The AUD/USD is building on Friday’s gains which saw the Aussie recover all the previous losses for the week.

Likewise, the USD/CAD is slipping further following Friday’s sell-off which saw the pair erase most of the gains seen since the 10th of January and test the 2019 lows. The USD/CHF is also slipping lower on increased risk appetite.

The EUR/USD and GBP/USD are lagging today after also making big gains on Friday. The pound rose to push through 1.13200, but is slipping below this today. Brexit optimism remains though as bets increase for a delay to Brexit and pushes against a no deal. The pound gave some of its recent losses back on Friday, with follow on buying seen this morning.

The yen pairs are on the back foot as money floods from the dollar back into the yen. The GBP/JPY is holding above the 144.00 level though.

Coming up today

Today, we have ECB President Draghi speaking at 14.00.

BOE Governor Carney speaks at 14.30.

Trade Idea

The USD/JPY opening gap has now been closed, but this morning’s opening gap could we worth following as money flows out of the dollar on trade and budget relief.

Dollar Slips as Risk Appetite Increases

A good way to play this is a LOWER trade predicting that the USD/JPY will close below 109.00 in 21 days for a potential return of 118%.

Dollar Slips as Risk Appetite Increases