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Daily Report

Dollar off the Pace on PPI13 September 2018 by Dave Evans

Morning Report: 07.00 London

This morning, the US dollar remains off the pace after PPI came in well below estimates yesterday.

Dollar pairs are generally enjoying strong gains, especially the AUD/USD which is making further gains after yesterday’s impressive rally. Australian employment change came in above estimates. The AUD/JPY is also performing well.

Meanwhile, the EUR/USD is rallying for the third day in a row as Turkey fears ease. The EUR/GBP is nudging higher for the third day in a row as the 0.8900 level holds.

The GBP/USD is unchanged but holding recent ‘Brexit hope’ gains, with the GBP/JPY holding above 145.00.

The Swiss franc is still strong against the US dollar though, with the USD/CHF unwinding all of Monday’s rally.

The dollar is making gains against the yen though following yesterday’s reversal.

Coming up today

The MPC meeting and bank rate vote is at 12.00.

The Main ECB refinancing rate is at 12.45.

The ECB press conference is at 13.30

Also at 13.30, we have US CPI and Canadian NHPI.

FOMC Member Quarles speaks at 15.00

At 18.15, we have FOMC member Bostic speaking at 18.15.

Trade Idea

Emerging market stresses have eased, but there is still strong potential for further EUR/CHF downside.

September 13th, 2018: Dollar off the Pace on PPI

A good way to play this is a LOWER trade predicting that the EUR/CHF will close below 1.1250 within 14 days for a potential return of 150%.

September 13th, 2018: Dollar off the Pace on PPI