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Dollar mixed on Eve of Fed26 September 2018 by Dave Evans

Morning Report: 07.00 London

This morning, the dollar index is mixed ahead of today’s FOMC meeting where the Fed are expected to raise rates by 0.25% to 2.25%.

The GBP/USD is peeling back slightly after a strong advance yesterday which has penetrated half of Friday’s slump. The EUR/USD is unchanged after struggling to make progress at the highs beyond 1.1800. The EUR/GBP is rising after two days of heavy losses on the pair.

The AUD/USD is performing better, with the pair higher after support held at 0.7250.

The Swiss Franc is recovering its poise though, with the USD/CHF on the back foot following two days of solid gains.

The USD/JPY is on the back foot after failing through the 113.00 resistance level. The GBP/JPY and EUR/JPY are following a similar pattern, slipping from the 149.00 level. The AUD/JPY is showing more promise though, challenging the 82.00 level.

Coming up today

Today we have US crude oil inventories at 15.30.

The FOMC statement and economic projections are at 19.00, with the press conference at 19.30.

The RBNZ cash rate policy statement is at 22.00.

Trade Idea

The USD/CHF is on the back foot again this morning after days of Swiss Franc pressure. Today’s FOMC meeting could see a continuation of the longer term trend.

September 26th, 2018: Dollar mixed on Eve of Fed

A good way to play this is a LOWER trade predicting that the USD/CHF will close below 0.9600 in 14 days for a potential return of 144%.

September 26th, 2018: Dollar mixed on Eve of Fed