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Daily Report

Traders Drop Dollar Ahead of Fed19 March 2019 by Dave Evans

Morning Report: 07.00 London

Traders are dropping the US dollar ahead of this week’s FOMC meeting, making early bets that the Fed will continue its dovish path. This could mark the third negative session in a row.

The pound continues with its volatility, with the GBP/USD struggling to push through 1.3300. It was another wild session yesterday, with small gains this morning.

By contrast, the EUR/USD continues to climb, posting its seventh positive session out of eight this morning so far. The EUR/GBP continues to climb, holding above the 0.8500 level and challenging the 0.8550 level.

The AUD/USD is unchanged, but holding just below the 0.7100 level.

The USD/CAD continues to slip lower, eyeing another test of the 1.3300 level. The USD/CHF is lower again and set to challenge the parity line once again.

The USD/JPY is trading lower again, slipping for the third day in a row, with support around 111.00 the next likely target. Other yen pairs are mixed, with the AUD/JPY struggling below 79.00 in thin trading. The GBP/JPY continues to struggle at the highs and is lower again after failing to break through the 148.00 level.

Gold is pushing higher again, nudging higher for the third session in a row.

Coming up today

Today we have UK average earnings at 09.30, with the unemployment rate released at the same time.

German ZEW economic sentiment follows at 10.00.

Trade Idea

With traders making bets on a softer dollar ahead of the Fed, the EUR/USD is performing with some consistency since hitting the March lows.

Traders Drop Dollar Ahead of Fed

There’s room for further upside and a good way to play this is a HIGHER trade predicting that the EUR/USD will close above 1.1400 in 14 days for a potential return of 153%.

Traders Drop Dollar Ahead of Fed