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Daily Report

Risk Appetite Rises, Dollar Slips23 January 2019 by Dave Evans

Morning Report: 07.00 London

The dollar index is slipping back slightly as global risk appetite returns. The AUD/USD is performing well following yesterday’s sub-par performance, recovering half of yesterday’s losses. The EUR/USD is also on the rise, bouncing off support around 1.1350. The GBP/USD is lagging though following yesterday’s rally that saw it push towards 1.3000.

The EUR/GBP continues to experience volatility, with a downside bias and further selling yesterday that saw the pair slip to challenge the January lows. There is a small recovery this morning though.

After a big rally yesterday, the USD/CAD is reversing half of those gains this morning.

The USD/CHF is unchanged though after pausing just below the parity line once more.

The USD/JPY is also rallying as the pair continues its recovery from the 2019 opening day flash crash. The GBP/JPY is making gains though, punching through the 141.00 level. The EUR/JPY is also making gains and is recovering most of yesterday’s losses. After a challenge of support around 78.00, the AUD/JPY is also recovering well.

Gold is holding the $1280 level after a successful test and hold yesterday.

Coming up today

MPC member Broadbent speaks at 09.30.

Canadian retail sales are at 13.30.

Trade Idea

Despite Brexit, the GBP/JPY has shown some good momentum this month, in line with other yen pairs.

Current market expectations are for another vote failure and extension of the deadline. Nothing is ever certain in Brexit, but the early 2019 momentum is notable.

Risk Appetite Rises, Dollar Slips

A good way to play this is a HIGHER trade predicting that the GBP/JPY will close above 143.00 in 14 days for a potential return of 124%.

Risk Appetite Rises, Dollar Slips