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Daily Report

Feb 8th, 2018: Dollar Stable, Eyes on MPC

Morning Report: 07.00 London

This morning, the US dollar is mixed after yesterday’s rally in line with stocks. This comes as hopes rise for a breaking of the US budget deadlock. In turn, the dollar pairs are generally mixed.

The NZD/USD is slipping lower as China and a neutral RBNZ weigh on the antipodean pairs. The AUD/USD has been hit hard this week, but is recovering this morning in line with other pairs.

The pound continues to recover well, with the GBP/USD’s gains outpacing the EUR/USD, just as yesterday’s losses were better than other dollar pairs. The EUR/GBP has dropped solidly for the last two days.

The yen pairs continue to wax and wane as the safe harbour of the yen attracts buyers one day and the resurgent dollar another. The EUR/JPY is trading higher this morning, so far undoing half of yesterday’s losses. The USD/JPY is performing better, rallying to erase most of yesterday’s losses.

Gold continues to struggle though, slipping from the highs.

Coming up today

RBA governor Lowe speaks at 09.00.

At 12.00, we have the UK MPC official bank rate vote, alongside the inflation report and voting patterns.

At 13.30, we have Canadian NHPI and US unemployment claims.

Trade Idea

The AUD/USD has struggled as China continues to be hit hardest by the recent crash. With the dollar trading with positive intent, we could see further downside for the AUD/USD.

Feb 8th, 2018: Dollar Stable, Eyes on MPC

A good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7800 in 14 days for a potential return of 138%.

Feb 8th, 2018: Dollar Stable, Eyes on MPC