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Dollar Weakens as Tariffs Ramp Up08 August 2018 by Dave Evans

Morning Report: 07.00 London

The US dollar remains under pressure as the US administration raises tariffs on more goods in the trade war against China. The dollar index is lower for the second straight day, given most dollar pairs a boost.

The EUR/USD continues to out-perform, rallying from Monday’s opening gap lower. The EUR/CHF has also risen fighting off support levels around 1.1500, meanwhile, the EUR/GBP has hit its highest levels for the year, challenging the 0.8980 level.

Meanwhile, the GBP/USD continues to struggle on hard Brexit fears. The GBP/USD is higher today, but is lagging its peers considerably.

The AUD/USD is rallying in line with other dollar pairs, while the USD/CHF is on the back foot for the second straight day. The USD/CAD did shoot higher on Canadian weakness.

Yen pairs are mixed, with the USD/JPY and AUD/JPY on the back foot. By contrast, the EUR/JPY is rising for the third straight day.

Coming up today

Today, we have FOMC member Barkin speaking at 13.45.

Crude oil inventories are at 15.30.

The RBNZ monetary policy statement is at 22.00

Trade Idea

The Aussie dollar has performed well of late, in direct contrast to the pound which is struggling against the weight of Brexit concerns.

The GBP/AUD is poised for lower levels if support was broken.

August 8th, 2018: Dollar Weakens as Tariffs Ramp Up

A good way to play this is a LOWER trade predicting that the GBP/AUD will close below 1.7400 in 14 days for a potential return of 116%.

August 8th, 2018: Dollar Weakens as Tariffs Ramp Up