Apr 12th 2016: Yen Reversal, but Dollar Struggles

• This morning the US dollar is on the back foot again, despite a reversal for the yen and USD/JPY. For the first in many session, the yen pairs are on the rise.

• Commodities are enjoying renewed interest, with oil prices pushing to multi-month highs. The USD/CAD has continued it’s downwards momentum as a result.

• The big movers are the Australian and New Zealand dollar, with the AUD/JPY enjoying the biggest gains.

• Meanwhile, the EUR/GBP momentum has finally cracked, with the pair slipping lower on pound strength.

Coming up today: 

• Today we have UK CPI at 09.30, released alongside RPI. A small increase in RPI is expected. PPI input is released at the same time.
• Following this, we have US import prices at 13.30.

Trade Idea: 

• The EUR/GBP is pulling back in the short-term, but the longer-term momentum is still pointing higher as Brexit uncertainty weighs on the pound.

• In this case, it may pay to buy the dip and a good way to play this is a HIGHER trade predicting that the EUR/GBP will close below 0.7950 in 21 days for a potential return of 151%.

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