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Dollar Steady Ahead of Fed06 July 2018 by Dave Evans

Morning Report: 07.00 London

The US dollar index is steady ahead of today’s FOMC meeting. Global markets are poised as the deadline for China steel tariffs passes. US data was mixed yesterday.

Dollar pairs are mixed, with the AUD/USD on the rise, but the GBP/USD and EUR/USD on the back foot. ADP non farm employment change dropped more than expected, while unemployment claims increased. ISM non-manufacturing PMI increased more than expected however and there were no surprises from the FOMC.

The pound gave up serious ground against the euro despite Carney expressing confidence in the UK economy. The EUR/GBP is higher again this morning.

The yen pairs are climbing higher, with the USD/JPY rising to re-test the highs around 111.00. The AUD/JPY and EUR/JPY are building on yesterday’s gains, while the GBP/JPY is making up some lost ground.

Coming up today

We have UK Halifax HPI at 08.30.

The big ticket is at 13.30, with US non farm payrolls at 13.30.

Canadian payroll data is also at 13.30.

Canadian Ivey PMI is also at 15.00.

Trade Idea

The yen has weakened of late as demand for safe havens subsides. Meanwhile, the euro is picking up some momentum, making the EUR/JPY an attractive upside bet.

July 6th, 2018: Dollar Steady Ahead of Fed

A good way to play this is a ONE TOUCH trade predicting that the EUR/JPY will TOUCH 131.50 within the next 14 days for a potential return of 140%.

July 6th, 2018: Dollar Steady Ahead of Fed