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May 15th, 2018: Euro Retreats After ECB Pop

Morning Report: 07.00 London

This morning, the euro is retreating again after reaching a high tide just shy of 1.2000 yesterday. The euro popped higher and subsequently retreated on comments from ECB member Villeroy indicated that a rate hike was on the cards sooner than expected. The EUR/USD is on the back foot, while the EUR/GBP has a negative bias again. The EUR/JPY is on the rise by contrast, largely driven by a weaker yen.

Other dollar pairs are following suit, with the GBP/USD and AUD/USD slipping lower. The latter impacted by a relatively dovish RBA meeting. The GBP/USD has held together at the lows recently though with some volatile trading.

The USD/CAD has risen for the third straight day despite oil prices making a pop higher.

The yen pairs are on the rise, fuelled by the stronger dollar and ongoing weakness in the yen.

Other yen pairs have a positive bias, but are mixed, with the AUD/JPY barely changed today.

Gold continues to feel the dollar heat, dropping for the third straight day.

Coming up today

Coming up today, we have UK average earnings index, claimant count change and the unemployment rate at 09.30.

European flash GDP is at 10.00, German ZEW economic sentiment at the same time.

US core retail sales with empire state manufacturing index are at 13.30.

FOMC member Williams speaks at 17.45.

Trade Idea

The USD/JPY is banging on the doors of 110.00 and today could see it push through.

May 15th, 2018: Euro Retreats After ECB Pop

A good way to play this is a HIGHER trade predicting that the USD/JPY will close above 110.50 in 14 days for a potential return of 195%.

May 15th, 2018: Euro Retreats After ECB Pop