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Daily Report

April 4th, 2018: Dollar Weakens Again on Tariff Details

Morning Report: 07.00 London

This morning, the US dollar remains weak as the Trump administration revealed trade tariffs that are wider ranging than previously thought. Market reaction has been relatively muted, but the underlying trend remains pressure on the dollar.

The AUD/USD continues to lift off the 2018 lows, with two days of solid gains. The NZD/USD remains rangebound, but is the top performer this morning, up 0.5%.

Meanwhile, the GBP/USD has ground out two days of gains, while the EUR/USD flounders. The EUR/USD is dropping for the third straight day, with the EUR/GBP dropping significantly for the third day in a row.

The USD/CAD continues to reverse in favour of the Canadian dollar on NAFTA hopes and dollar weakness.

While the dollar is under pressure, the yen is also weakening, with the USD/JPY making gains. The AUD/JPY is one of the top performing yen pairs, trading off the lows.

Coming up today

Today, we have UK construction PMI at 09.30.

This is followed by European CPI flash estimates at 10.00.

US ADP non-manufacturing PMI is at 15.00.

US crude oil inventories are at 15.30.

FOMC member Mester speaks at 16.00.

Trade Idea

The pound has gathered recent momentum, while the yen steps off the gas. The GBP/JPY has been impressive throughout March and this could continue through April.

April 4th, 2018: Dollar Weakens Again on Tariff Details

A good way to play this, is a HIGHER trade predicting that the GBP/JPY will close above 151.50 in 14 days for a potential return of 177%.

April 4th, 2018: Dollar Weakens Again on Tariff Details