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Nov 6th, 2017: US Dollar Maintaining Strong Position

Morning Report: 07.00 London

This morning, the US dollar is maintaining its strong position despite Friday’s mixed set of employment figures. US Average earnings and non farm employment changed dropped more than expected. Meanwhile, the unemployment rate dropped to 4.1%, with ISM non-manufacturing PMI rising more than expected. Overall, these were disappointing numbers, yet the dollar managed to peek out gains on Friday and so far this morning.

The USD/JPY is on the rise, ironically as Trump meets with Shinzo Abe to discuss trade deals. The USD/JPY continues to rise and is challenging the highs from May and July.

The yen pairs generally have a positive bias, but the medium and long term looks mixed.

The dollar pairs have a negative bias this morning, with the AUD/USD looking vulnerable after heavy selling Friday. The GBP/USD is lower after an attempted recovery Friday.

Gold continues to slip lower as the dollar continues to slip from the September highs.

Coming up today

Today, we have a slew of minor economic releases from Europe from 08.15, including German final services PMI.

At 15.00, we get Canadian Ivey PMI.

FOMC member Dudley speaks at 17.10.

Trade Idea

After days of a counter rally, the NZD/USD appears to be trading lower again this morning. Inflation expectations dropped for New Zealand this morning, which could point to lower levels for the NZD/USD.

Nov 6th, 2017: US Dollar Maintaining Strong Position

A good way to play this is a LOWER trade predicting that the NZD/USD will close below 0.6800 in 14 days for a potential return of 240%.

Nov 6th, 2017: US Dollar Maintaining Strong Position