Daily Report October 12th 2018: Wall Street Worries Weigh on Dollar

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

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Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.

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