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Daily Report

Dollar Stable on Fed Minutes30 November 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is recovering its poise after a volatile week that saw mixed news around the FOMC. Comments from Powell implied a Dovish stance, while the latest FOMC minutes showed that a rate hike remains imminent.

The AUD/USD is pulling back from the highs, with the pair peaking at just under 0.7350 yesterday.

The euro remains relatively strong, after a solid session yesterday, while the pound is still languishing near the lows. The GBP/USD is unchanged so far while other pairs are making gains. The EUR/GBP is slightly lower after gains pushed the pair above 0.8900 yesterday.

The USD/CAD is making gains and remains within reach of the highs as the US dollar regains its poise.

The USD/CHF made another bid for the parity line yesterday, falling short, but making back the bulk of the previous day’s losses. There are small gains this morning.

Yen pairs are mixed, with the USD/JPY unchanged and the AUD/JPY slipping back, but still within reach of the highs. The EUR/JPY is unchanged, while the GBP/JPY is experiencing small follow-on selling.

Coming up today

At 08.00, we have the Swiss KOF economic barometer.

European CPI flash estimate is at 10.00.

Canadian GDP is at 13.30, released alongside RMPI.

FOMC member Williams speaks at 14.00.

Chicago PMI is at 14.45.

Trade Idea

The euro remains on shaky ground regardless of any Brexit contagion, while the Australian dollar continues to out-perform.

Nov 30th 2018: Dollar Stable on Fed Minutes

There’s further downside potential for the EUR/AUD and a good way to play this is a LOWER trade predicting that the pair will close below 1.5500 in 14 days for a potential return of 133%.

Nov 30th 2018: Dollar Stable on Fed Minutes