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Wall Street Worries Weigh on Dollar12 October 2018 by Dave Evans

Morning Report: 07.00 London

The US dollar remains weak and is testing the October lows. US Stock markets have continued their descent, while US CPI came in below estimates yesterday.

The GBP/USD is rallying once again, remaining within sight of the 1.3250 highs on building Brexit optimism.

The euro continues to recover, building for its fourth straight day. The EUR/CHF has recovered rapidly, smashing through the August highs to test the 1.15000 level. Even the EUR/GBP is recovering, making gains for the second straight day.

The AUD/USD is building on yesterday’s solid rebound that lifted the pair well off the lows.

The USD/CAD is dropping for the second straight day, but Wednesday’s blockbuster gains still hold. The USD/CHF remains rangebound however as safe haven demand trickles to a stop.

The US dollar is making gains against the yen though as the IMF warns against Asia growth. The AUD/JPY has now recovered the majority of Wednesday’s losses, while the EUR/JPY holds the 130.00 level. The GBP/JPY remains rangebound however.

Coming up today

Today, we have Preliminary UoM Consumer Sentiment at 15.00.

FOMC member Bostic speaks at 17.30.

Trade Idea

The pound continues to strength in-line with Brexit negotiations, while the Japanese yen sells-off on Asian growth concerns.

October 12th 2018: Wall Street Worries Weigh on Dollar

There could be further upside for the GBP/JPY and a good way to play this is a HIGHER trade predicting that the pair closes above 150.00 in 14 days for a potential return of 144%.

October 12th 2018: Wall Street Worries Weigh on Dollar