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Jan 3rd, 2018: Pound Advances Despite Manufacturing Dip

Morning Report: 07.00 London

This morning, the British pound continues to outperform despite yesterday’s sub-par Manufacturing PMI. Housing equity withdrawals came in better than expected which may have softened the blow somewhat. The GBP/USD is unchanged after strong gains yesterday. The EUR/GBP continues its decline for the week as other dollar pairs struggle.

The EUR/USD is reversing yesterday’s gains, while the EUR/JPY is struggling after touching the 135.50 level.

The AUD/USD is reversing, with the AUD/JPY struggling for the last four sessions.

The USD/CAD is climbing higher this morning after pausing at the 1.2500 level yesterday.

Gold is reversing significantly this morning after yesterday’s spike higher that topped a remarkable rally since the middle of December.

Coming up today

We have Spanish unemployment change at 08.00.

Construction PMI follows at 09.30.

At 15.00, we have ISM manufacturing PMI.

The FOMC meeting minutes are released at 19.00.

It is a bank holiday today in Japan.

Trade Idea

We have the release of the FOMC meeting minutes today which could provide some dollar volatility, but generally the trend still appears to be against the Greenback.

Of the dollar pairs, the GBP/USD is showing the most promise despite indifferent manufacturing data and ongoing Brexit uncertainty.

Jan 3rd, 2018: Pound Advances Despite Manufacturing Dip

A good way to play this is a HIGHER trade predicting that the GBP/USD will close above 1.3670 in 14 days could return 163% if successful.

Jan 3rd, 2018: Pound Advances Despite Manufacturing Dip