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Euro Rallies as Pound Retreat05 July 2018 by Dave Evans

Morning Report: 07.00 London

The euro is picking up the baton and making gains after playing second fiddle to the pound yesterday. The pound rallied on the back of strong services PMI data yesterday, with the EUR/GBP slipping. The euro is catching up though, with the EUR/GBP erasing yesterday’s gains and the EUR/USD posting its highest levels since the middle of June.

The pound is still performing ok though, making a third straight day of gains against the dollar. The dollar index is weaker again, but remains within sight of the recent highs.

The AUD/USD is lagging and is unchanged however, though the AUD/JPY is making small gains.

The yen pairs generally have a positive bias as the yen weakens with risk taking increasing. The USD/JPY is rallying for the second straight day.

Coming up today

Today we have BOE governor Carney speaking at 11.00

German Buba President Weidmann speaks at 12.15.

US ADP Non Farm Employment Change is at 13.15.

At 15.00, we have ISM non manufacturing PMI.

Crude oil inventories are at 16.00.

FOMC meeting minutes are released at 19.00.

Trade Idea

The euro has performed well recently, while the Australian dollar has to deal with the constant danger of Chinese contraction.

July 5th, 2018: Euro Rallies as Pound Retreat

A good way to play with this is a HIGHER trade predicting that the EUR/AUD will close above 1.60000 within 14 days for a potential return of 220%.

July 5th, 2018: Euro Rallies as Pound Retreat