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Daily Report

Yen Demand Climbs10 January 2019 by Dave Evans

Morning Report: 07.00 London

Despite Stock markets staging a recovery, the safe haven of the Japanese yen is in demand this morning. The USD/JPY is lower for the second straight day following yesterday’s reversal from the 109.00 level. The EUR/JPY is struggling to break through 125.00, while the GBP/JPY is set to test support at 138.00. The AUD/JPY is holding up relatively well though.

The US dollar index continues to reverse, falling to its lowest levels since November.

Dollar pairs are mixed, with the AUD/USD leading and higher for the sixth straight day. The EUR/USD is unchanged though after yesterday’s spectacular rally. Meanwhile, the GBP/USD is reversing after struggling to break through the 1.2800 level.

The USD/CAD dropped yesterday following yesterday’s BOC report which kept rates on hold as expected and offered a cautious note. The pair is rallying this morning though.

The Swiss franc continues to gather buyers though, with the USD/CHF plunging below 0.9759 yesterday.

Gold is challenging the highs, with a test of $1295 this morning.

Coming up today

Today, we have the ECB Monetary Policy Meeting Accounts released at 12:30.

Fed Chair Powell speaks at 17:00

FOMC member Bullard speaks at 17:40

FOMC member Evans speaks at 18:00.

Trade Idea

Stock markets are attempting a recovery, but the main haven assets of gold and the Swiss franc are climbing in demand. This hints at a level of caution across world markets.

The USD/CHF has broken its previous trading range and the September lows could now be a target.

Yen Demand Climbs

A good way to play this is a ONE TOUCH trade predicting that the USD/CHF will touch 0.9600 within the next 14 days for a potential return of 130%.

Yen Demand Climbs