Daily Report October 26th 2018: Stocks Stabilise, Currencies Tell Another Story

US stock markets recovered from the previous day’s plunge, but currencies are telling another story. Traders are still clamouring for the safety of the US dollar and Japanese yen.

The dollar index continues to climb, butting pressure on dollar pairs. The AUD/USD is being singled out for punishment, slipping below the 0.7050 support level.

The EUR/USD and GBP/USD have dropped for the third straight day as the September highs appear further away. The euro remains relatively strong though, with the EUR/GBP pushing higher yesterday but slipping back slightly this morning. The euro is slipping back against the Swiss franc though, with the EUR/CHF trading just about 1.1350.

The euro’s weakness against the Swissy comes despite the Swiss Franc’s own troubles against the dollar. After much stalling, the USD/CHF finally broke the parity line yesterday, trading above it this morning.

The USD/CAD reversed all of its post BOC losses, with the Canadian dollar retreating against the US dollar’s inexorable advance.

The yen is top dog this morning, with the USD/JPY on the back foot. Other yen pairs are falling significantly, with the AUD/JPY sipping below support at 79.00. The EUR/JPY and GBP/JPY are continuing their sell-off, with the latter now the worst performer on the week, down 2.31%.

Coming up today

Today, we have US advance GDP at 13.30, alongside advance GDP price index.

ECB President Draghi speaks at 15.00, with revised UoM consumer sentiment at 15.00.

Trade Idea

The GBP/JPY is the worst performer this week as Brexit continues to weight on the pound and the yen is boosted by the safe haven drive.

October 26th 2018: Stocks Stabilise, Currencies Tell Another Story

Further downside is on the cards and a good way to play this is a LOWER trade predicting that the GBP/JPY will close below 143.00 in 14 days could return 151% if successful.

October 26th 2018: Stocks Stabilise, Currencies Tell Another Story

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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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