Daily Report October 17th 2018: Pound Steadies on Earnings

The British pound is holding up relatively well, after average earnings came in above estimates yesterday. The EUR/GBP closed Monday’s opening gap higher yesterday, though finished off the lows around 0.8750. There is follow on selling this morning, with Brexit fears dampening economic optimism. Like other dollar pairs, the GBP/USD is on the back foot, as is the GBP/JPY.

The AUD/USD holding up relatively well, with only minor selling this morning after support around 0.7050 holds. The AUD/JPY resumed its down swing this morning after a recovery yesterday.

The Euro is under pressure again this morning. EUR/JPY is selling off with moderate force this morning, erasing yesterday’s gains and keeping the downtrend on track. The EUR/USD is testing support at 1.1550, while the EUR/CHF is on the back foot, testing the euro’s rise against the Swissy.

The USD/CAD is on the front foot, making gains after four days of losses. The USD/CHF has moved back within its range, just above 0.9900.

Coming up today

We also have day 1 of the EU economic summit.

At 09.30, we have UK inflation, with CPI and RPI.

At 13.30, we have US building permits and housing starts, released alongside Canadian manufacturing sales.

US crude oil inventories are at 15.30.

FOMC member Brainard speaks at 17.10.

Buba President Weidmann speaks at 17.30.

MPC member Broadbent speaks at 18.00.

At 19.00, we have the release of the FOMC meeting minutes.

Trade Idea

The Swiss franc is weakening as stock markets stabilise and risk appetite diminishes. Meanwhile, the US dollar is rebuilding momentum.

October 17th 2018: Pound Steadies on Earnings

A good way to play this is a HIGHER trade predicting that the USD/CHF will close above 0.9950 in 14 days for a potential return of 176%.

October 17th 2018: Pound Steadies on Earnings

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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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