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Dollar Strong Ahead of FOMC01 August 2018 by Dave Evans

Morning Report: 07.00 London

The US dollar remains strong this morning, ahead of today’s US Non Farm Payroll data and FOMC meeting. The AUD/USD is firmly on the back foot, reversing yesterday’s gains and halting the mini rally. The EUR/USD is also cutting back, after failing to break through the 1.1700 level once again. Meanwhile, the GBP/USD remains weak, but is holding just above the support levels at 1.3100. US Chicago PMI and consumer confidence both came in above expectations.

Elsewhere, the US dollar is making gains against the Canadian dollar for the first time in three sessions. The USD/CHF has reversed most of Monday’s losses as the Swiss franc loses its allure.

The yen pairs are on the front foot as the dollar claims the main interest in the global safe haven stakes. The USD/JPY is building on yesterday’s solid gains. The GBP/JPY and EUR/JPY are rallying for the third straight day, while the AUD/JPY pauses.

Gold is slipping lower once again.

Coming up today

Today we have UK manufacturing PMI at 09.30.

This is followed by US ADP non farm employment change at 13.15.

US ISM manufacturing PMI is at 15.00.

Crude oil inventories are at 15.30.

The FOMC statement is at 19.00.

Trade Idea

With the dollar back in control and major data due today, the USD/JPY is likely to retest the recent highs.

August 1st, 2018: Dollar Strong Ahead of FOMC

A good way to play this is a ONE TOUCH trade predicting that the USD/JPY will touch 113.50 within 14 days for a potential return of 170%.

August 1st, 2018: Dollar Strong Ahead of FOMC