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Jan 2nd, 2018: Dollar Starts 2018 With Decline

Morning Report: 07.00 London

This morning, the dollar index is starting 2018 as it ending last year – with a decline. The Greenback has broken the October lows, cementing a poor year which has seen losses of 7%, its worse year since 2007. Traders are exercising caution and going with the general negative trend this morning, with many awaiting the release of the FOMC minutes tomorrow.

The dollar pairs have started the day well, with the AUD/USD extending its late December run.

The EUR/USD and GBP/USD saw a strong surge in the last trading session of 2017 and this momentum is continuing this morning, with the euro maintaining its slight edge.

The USD/JPY has slipped since Christmas, mainly on the back of the weak US dollar.

The Canadian dollar has grown against the US dollar as oil prices jump to the $66 level.

Meanwhile gold has been on a powerful run since December 13th, rising to its highest levels since September.

Coming up today

We have a quiet day ahead today, with lower tier European manufacturing PMI data in the morning.

UK manufacturing PMI is at 09.30.

It is a bank holiday in Japan today.

Trade Idea

Oil prices have jumped to the $66 region, providing a further boost to the Canadian dollar, driving the USD/CAD even lower.

Jan 2nd, 2018: Dollar Starts 2018 With Decline

A good way to play this is a LOWER trade predicting that the USD/CAD will close below 1.2450 in 14 days for a potential return of 166%.

Jan 2nd, 2018: Dollar Starts 2018 With Decline