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Daily Report

Euro Outperforms17 April 2019 by Dave Evans

Morning Report: 07.00 London

This morning, the US dollar index remains rangebound, with one clear counter party winner – the euro.

The euro is the form currency at the moment despite pressure across the board on the eurozone economy and Brexit uncertainty. The EUR/USD is recovering yesterday’s losses and is holding above 1.1340. The EUR/JPY is also making good yesterday’s poor performance and is trading above support at 126.50. The EUR/GBP is nudging higher and trading above resistance at 0.8650. The EUR/CHF is extending its winning run, with positive performances in 10 of the last 13 sessions and four of the last four. The late March slump has now been recovered in a remarkably quick rally.

Other dollar pairs are also on the rise, with the AUD/USD higher and just shy of 0.7200 following better than expected China GDP. The GBP/USD remains rangebound, but is making small gains.

The USD/CAD is lower but remains rangebound, while the USD/CHF is nipping back slightly, but the US dollar is firmly in control with the pair trading well above the 1.0050.

Yen pairs are mixed, with the USD/JPY unchanged at the highs and trading just below 112.00. The GBP/JPY is lagging but holding above 146.00. The AUD/JPY is trading at the highs for the year.

Gold is making small gains, but has sunk over $30 this week and over $60 since the February highs.

Coming up today

Today, we have UK CPI at 08.30, released alongside RPI and PPI input.

Canadian CPI and trade balance are at 12.30.

BOE governor Carney speaks at 13.00.

FOMC member Bullard speaks at 16.45.

Trade Idea

The EUR/AUD is at its lowest levels for the year as the Aussie lags and the euro maintains its out-performance.

Euro Outperforms

There could be further downside from here and a good way to play this is a LOWER trade predicting that the EUR/AUD closes below 1.5600 in 14 days for a potential return of 221%.

Euro Outperforms