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Daily Report

Jan 18th, 2018: Dollar Subsides After Rate Rise Excitement

Morning Report: 07.00 London

This morning, the dollar is easing off the pace following a day of solid gains yesterday. These gains came as Dallas Fed President Robert Kaplan outlined that three rate hikes were his baseline for 2018. At the same time, the dollar’s main counterparty – the euro slumped as ECB officials expressed concern over recent euro gains.

As consequence, the dollar pairs have a positive bias this morning after mixed trading yesterday. The EUR/USD plunged with its worst day of 2018 so far, while the GBP/USD held its ground on an upbeat assessment of the unemployment market from the MPC’s Saunders. The EUR/GBP slumped as a consequence, with small gains this morning.

The NZD/USD and AUD/USD managed small if volatile gains yesterday, with the Kiwi enjoying a solid session so far today. The Aussie is lagging after a mixed employment report.

The USD/CAD saw some of the greatest volatility yesterday, but ultimately closed slightly higher after the BOC increased rates as expected but set a hawkish tone.

Yen pairs saw some of the biggest gains yesterday as money flooded from the yen and into the dollar. The GBP/JPY is now the biggest gainer on the week.

Coming up today

German Buba President Weidmann speaks at 08.00.

At 13.30, we get US building permits, housing starts, Philly Fed Manufacturing and unemployment claims.

US crude oil inventories are at 16.00.

Trade Idea

The GBP/JPY has continued to accumulate despite Brexit uncertain and is so far a top performer this week.

There could be more upside from here as yen pairs generally appreciate.

Jan 18th, 2018: Dollar Subsides After Rate Rise Excitement

A good way to play this is a HIGHER trade predicting that the GBP/JPY will close above 155.00 in 35 days for a potential return of 135%.

Jan 18th, 2018: Dollar Subsides After Rate Rise Excitement