Daily Report October 16th 2018: US Dollar Recovers Retail Slump

Morning Report: 07.00 London

The US dollar is recovering after core retail sales came in well below estimates yesterday. Dollar pairs are on the back foot, but so far yesterday’s gains are holding.

The AUD/USD is on the back foot, while the NZD/USD out-performs. The EUR/USD and GBP/USD are both on the back foot, but the pound’s gains were notable yesterday after making good Monday’s opening gap losses.

The USD/CAD is unchanged after the Canadian dollar continued to weaken against the US yesterday. Meanwhile, the Swiss franc is weaker following yesterday’s reversal which saw the USD/CHF test the 0.9850 level.

Yen pairs are on the front foot, with the USD/JPY testing the bullish waters for only the second time since the major reversal began on the 4th. Other yen pairs are showing minor gains as investor pressure for safe havens diminishes.

Gold is unchanged after extending its winning run following a spike higher last week that broke the mid-summer’s trading range.

Coming up today

Today, we have UK average earnings index at 09.30. The unemployment rate is released at the same time.

Canadian foreign securities purchases is at 13.30.

MPC member Cunliffe speaks at 14.15.

FOMC member Daly speaks at 21.15.

Trade Idea

The dollar remains the currency of choice for investors and is projected to raise rates further and faster than the euro, yen and pound. By contrast, the euro remains weighed down by fears of Italian banks dragging the wider economy lower.

October 16th 2018: US Dollar Recovers Retail Slump

A good way to play this is a LOWER trade predicting that the EUR/USD will close below 1.1550 in 14 days for a potential return of 138%.

October 16th 2018: US Dollar Recovers Retail Slump

Open Trade

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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