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Daily Report

Pound Holds as BOE Boost Growth Prospects03 May 2019 by Dave Evans

Morning Report: 07.00 London

This morning, the US dollar index is nipping back after making solid gains in each of the last two days.

There are tentative gains across dollar pairs, with the GBP/USD limiting losses and holding above 1.3000 as the Bank of England boosted growth forecasts. The EUR/GBP continues to step lower, falling for its fourth straight day this morning.

The EUR/USD is unchanged after posting heavy losses yesterday that pushed the pair below 1.1200 yesterday. The EUR/CHF is posting small gains in another push to break through 1.1400 after falling below yesterday.

The AUD/USD is posting small gains after dropping below 0.7000 yesterday and trading just below this morning.

The USD/CAD is slipping back after two days of solid gains that pushed the pair above the 1.3450 level. Meanwhile the USD/CHF is trading just below 1.0200, a level that has acted as a magnet for price activity in recent years.

The USD/JPY is unchanged so far and challenging the 111.50 level. The AUD/JPY is recovering well and holding support around 78.00. The EUR/JPY is struggling through, but holding above 124.50, just.

Coming up today

Today, we have UK services PMI at 08.30.

European CPI flash estimates follow at 09.00.

At 12.30, we have US Non Farm Payroll, average hourly earnings and the unemployment rate.

US ISM Non-Manufacturing PMI is at 14.00.

Then we have a collection of FOMC speakers Evans speaks at 14.15, Clarida speaks at 15.30, Williams speaks at 17.45, Bowman at 19.00 and Bullard at 23.45.

Trade Idea

The AUD/JPY continues to struggle with small gains this morning, set against a consistent slide from the highs above 80.50.

Pound Holds as BOE Boost Growth Prospects

There could be further downside and a good way to play this is a LOWER trade predicting that the AUD/JPY will close below 77.50 in 14 days for a potential return of 168%.

Pound Holds as BOE Boost Growth Prospects