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Kiwi Plunges as RBNZ Errs09 August 2018 by Dave Evans

Morning Report: 07.00 London

The NZD/USD is struggling after the RBNZ opted to push out its interest rate forecast further into the future. The Kiwi is trading below 0.6700 for the first time this year.

The British pound continues to struggle in the face of Brexit fears, with the GBP/USD trading at its lowest levels since August last year. The GBP/JPY is making small gains this morning, but the damage was done yesterday with significant losses, bringing the pair to well below 143.00. The EUR/GBP spiked to its highest levels since October as the euro maintained its relative strength.

The dollar index is once again on the back foot, helping dollar pairs to generally lift higher. The AUD/USD is pushing higher despite its neighbour the Kiwi selling off. The Canadian dollar is also making gains despite yesterday’s oil price reversal.

The EUR/USD is unchanged this morning though, with the EUR/JPY making small gains compared to the GBP/JPY’s losses.

Coming up today

Today, we have US PPI and unemployment claims, released alongside Canadian NHPI at 13.30.

Trade Idea

The GBP/USD continues to struggle despite dollar weakness, largely driven by Brexit fears.

August 9th, 2018: Kiwi Plunges as RBNZ Errs

There could be further downside from here and a good way to play this is a LOWER trade predicting that the GBP/USD will close below 1.2825 in 14 days for a potential return of 164%.

August 9th, 2018: Kiwi Plunges as RBNZ Errs