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Dollar Weakens as Mid-Terms Hit Stimulus Hopes08 November 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index remains on the back foot this morning, giving dollar pairs a moderate boost. The GBP/USD continues to hold gains on Brexit hopes despite the lack of concrete progress in recent days. The EUR/USD is struggling though after falling back yesterday. The EUR/GBP is drifting lower again as a consequence, with 0.8700 the next target.

The AUD/USD continues to out-perform, with November seeing five winning sessions out of six.

The USD/CHF is back above the parity line after a volatile session yesterday that saw the pair dip below the parity line at certain points in the day.

The yen pairs are on the front foot, as the USD/JPY travels above 113.50 as the yen interest diminishes in current times of risk appetite. The GBP/JPY is continuing its excellent run, holding above 149.00. The EUR/JPY is higher, but lagging and struggling to push through 130.00.

The AUD/JPY is the top performer, with six solid winning sessions so far in November and now holding well above 82.50.

Coming up today

At 10.00, we have EU Economic Forecast.

Swiss Governing Borad Member Maevchler speaks at 17.30.

At 19.00, we have the FOMC statement, with no change expected.

Trade Idea

The Australian dollar continues to out-perform, while the yen remains under pressure. The AUD/JPY has moves well in November and there could be further upside from here.

Nov 8th 2018: Dollar Weakens as Mid-Terms Hit Stimulus Hopes

A good way to play this is a HIGHER trade predicting that the AUD/JPY will close above 83.50 in 14 days for a potential return of 160%.

Nov 8th 2018: Dollar Weakens as Mid-Terms Hit Stimulus Hopes