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October 12th, 2017: Dollar Weakens as Fed Errs

Morning Report: 07.00 London

This morning, the US dollar is continuing to sell off after last night’s Fed minutes revealed a divided Fed who are unsure on how to deal with persistently low inflation. The US dollar index dropped yesterday and is showing renewed weakness this morning.

Dollar pairs have consequently enjoyed gains, led by the AUD/USD and NZD/USD.

The pound has enjoyed a good week, rallying for five days in a row as Theresa May lives to fight another week.

The yen pairs are mixed, with the USD/JPY dropping lower, but the AUD/JPY making gains.

Gold is enjoying the current dollar impasse though, rising for the sixth straight day.

Coming up today

This morning, we get the UK BOE credit conditions survey at 09.30.

At 13.30, we get US PPI, unemployment claims and Core PPI.

ECB President Draghi speaks at 15.30, alongside FOMC members Brainard and Powell.

US crude oil inventories are released at 16.00.

Trade Idea

Gold has waxed and waned in recent months, but the general trend remains higher. With the US dollar showing signs of weakness and investors looking for potential inflation and risk hedges, gold could well be in demand over coming months.

October 12th, 2017: Dollar Weakens as Fed Errs

A HIGHER trade on gold predicting that it will close above $1325 in 90 days could return 171% if successful.

October 12th, 2017: Dollar Weakens as Fed Errs