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Dollar Stable Amid Tech Reversal20 November 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is stable despite further selling of US technology stocks last night. The Nasdaq 100, home to Apple, Amazon and Microsoft et al sold off by over 3% and is sitting at the lows.

Dollar pairs are mixed this morning, with the Australian dollar struggling on release of the latest RBA meeting minutes which pointed out a number of risks on the horizon. Both the AUD/USD and AUD/JPY are selling for the second straight day after gapping lower Monday morning.

Both the EUR/USD and GBP/USD are unchanged this morning with both making moderate gains yesterday. The euro maintains the upper hand, with the EUR/GBP making gains in four out of the last five sessions with small losses this morning. The EUR/JPY is making slow progress against yen strength, while the GBP/JPY is at least unchanged this morning after struggling against the yen.

The Swiss franc is resurgent though, forcing the USD/CHF below the parity line for the first time this month as investors seek out safe havens.

There have been similar moves on the USD/JPY which extended Friday’s losses yesterday and is unchanged so far this morning. The yen is picking up interest as the dollar softens amid the tech sell-off.

Coming up today

Today we have UK inflation report hearings at 10.00.

US building permits and housing starts are at 13.30.

German Buba President Weidmann speaks at 15.00.

Trade Idea

The Swiss Franc is back in demand, helping the EUR/CHF to slip lower in line with the longer term trend of euro weakness.

While the dollar backs off and with risk appetite increasing, now could be a good time to bet on further Swissy strength.

Nov 20th 2018: Dollar Stable Amid Tech Reversal

A good way to play this is a LOWER trade predicting that the EUR/CHF will close below 1.1350 in 14 days for a potential return of 116%.

Nov 20th 2018: Dollar Stable Amid Tech Reversal