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Treasury Yields Push Dollar Higher20 September 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is on the back foot this morning, but is still the power currency as bond yields and stock markets help keep the Greenback in control.

The AUD/USD is just about negative after two days of solid gains. The EUR/USD is also higher after a tight session yesterday.

The GBP/USD is higher as well, but suffered larger losses yesterday as PM May pushed back on the EU’s Northern Ireland plans.

The Swiss franc continues to struggle as traders shun the need for Swiss franc. The USD/CHF is unchanged this morning after two days of gains. The EUR/CHF has also risen to test the 1.3000 level.

There have been solid losses for the USD/CAD for the last two days, though the pair is unchanged this morning.

The USD/JPY is on the back foot after two days of gains, with other yen pairs such as the GBP/JPY following suit with back to back losses.

Coming up today

Today we have the SNB monetary policy assessment and Libor rate at 08.30.

At 09.30, we have UK retail sales.

US Philly Fed Manufacturing Index is at 13.30.

Buba President Weidmann speaking at 16.15.

Trade Idea

The Australian dollar has performed well in recent days, but the longer term trend remains firmly negative.

There remain considerable risks and pressures on the Australian dollar, but the US dollar is still the global power currency.

September 20th, 2018: Treasury Yields Push Dollar Higher

A good way to play this is LOWER trade predicting that the AUD/USD will close below 0.7200 in 14 days for a potential return of 199%.

September 20th, 2018: Treasury Yields Push Dollar Higher