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Safe Havens Gain as Trade War Gap Widens13 May 2019 by Dave Evans

Morning Report: 07.00 London

This morning, the Japanese yen and Swiss franc are strong as safe havens rise in demand. The China-US trade deal differences appear to be widening despite Trump’s reassurances. US CPI also came in below estimates on Friday.

The USD/JPY has gapped below 110.00 to trade at 109.70 this morning. The AUD/JPY is also struggling, with the Aussie hit by China contagion. By contrast the EUR/JPY is unchanged and the GBP/JPY is nudging back to unchanged after gapping lower.

The dollar index is on the rise, pushing dollar pairs lower. The AUD/USD is struggling and heading for the lows after gapping below 0.7000. The GBP/USD is making small gains as the 1.3000 level holds. The EUR/USD is slipping back slightly though, helping the EUR/GBP to reverse after five straight days of gains.

The Swissy continues to make gains after the USD/CHF gapped lower to test the 1.0100 level once again. The EUR/CHF is also struggling and has fallen to test the 1.1350 level once again.

After suffering heavy falls on Friday, the USD/CAD has risen again to hold the 1.3400 level.

Coming up today

Today, we have US FOMC member Clarida speaking at 13.10.

RBC governing council member Lane speaks at 21.30.

Trade Idea

The Swiss franc is in demand and this trend to could continue as the trade war sinks lower. The euro is struggling right now, making the EUR/CHF an attractive bearish bet.

Safe Havens Gain as Trade War Gap Widens

A good way to play this is a LOWER trade predicting that the EUR/CHF closes below 1.1300 in 14 days for a potential return of 187%.

Safe Havens Gain as Trade War Gap Widens