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Dollar Stumbles on Tech Earnings05 February 2019 by Dave Evans

Morning Report: 07.00 London

The dollar index is on the back foot this morning as US markets show concern over tech giant Alphabet’s (Google) rising costs. Dollar pairs are generally higher, but the star of the morning is the AUD/USD which is rallying strongly despite the RBA hinting that rates will be kept on hold for some time.

The EUR/USD is experiencing follow-on selling, while the GBP/USD makes small gains. The EUR/GBP is selling off as a result, erasing half of yesterday’s gains.

The USD/CHF is continuing its upwards February, after challenging the January highs yesterday.

The Canadian dollar is showing relative strength though, with the USD/CAD pulling back again to challenge support around 1.3100.

The USD/JPY closed the 2019 opening gap higher yesterday, with the pair closing just shy of 110.00. The AUD/JPY is pushing higher again, while the GBP/JPY and in particular the EUR/JPY struggle.

Coming up today

UK services PMI are at 09.30.

US ISM Non-Manufacturing PMI is at 15.00.

Trade Idea

The AUD/JPY continues to out-perform, pushing up to challenge the 80.00 level. This could well continue with Aussie strength and yen indifference.

Dollar Stumbles on Tech Earnings

A good way to play this is a HIGHER trade predicting that the AUD/JPY will close above 80.00 in 14 days for a potential return of 108%.

Dollar Stumbles on Tech Earnings