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Dollar in Control on Manufacturing Boost16 May 2018 by Dave Evans

Morning Report: 07.00 London

This morning, the dollar remains in control as risk factors flood into global markets. North Korean talks have collapsed, with Pyongyang blaming the one sided nature of demands and negotiations.

Dollar pairs generally are unchanged this morning, but pressure remains. The euro is under particular pressure, after documents released from the Five Star movement revealed initial desires to remove Italy from the euro. The EUR/USD plunged yesterday, while the EUR/GBP slipped to two straight losses in a low.

The EUR/GBP has a positive bias yesterday, but there were significant losses yesterday There is considerable pressure on the euro, despite UK earnings and unemployment claims data disappointing.

The USD/JPY has continued to climb, breaking the 110.00 level. Other yen pairs have been more circumspect, with the EUR/JPY lagging behind.

Gold suffered heavy selling yesterday as the dollar takes control.

Coming up today

Today we have Canadian manufacturing sales at 13.30.

At the same time, we have US building permits and housing starts. FOMC member Bostic speaks at the same time.

At 14.15, we have capacity utilisation rate and industrial production.

US Mortgage delinquencies are at 15.00, with crude oil inventories released at 15.30.

BOC governing council member Schembri speaks at 17.00, with SNB chairman Jordan speaking at the same time.

Trade Idea

The euro continues to struggle, not helped by ongoing problems in Italy which hint at cracks within a core EU nation.

May 16th, 2018: Dollar in Control on Manufacturing Boost

A good way to play this is a LOWER trade predicting that the EUR/USD will close below 1.1800 in 14 days for a potential return of 135%..

May 16th, 2018: Dollar in Control on Manufacturing Boost