Apr 7th 2016: Cautious Fed Sinks Dollar

• This morning, the dollar remains under pressure after the minutes from the last FOMC meeting revealed a cautious Fed that may delay a rate hike until after June. The release sent the dollar reeling against most other currencies, with oil prices enjoying an unexpected boost as a result.

• The yen is picking up the baton as the world’s reserve currency, with the USD/JPY and other yen pairs extending their recent losing run.

• Elsewhere, the euro continues to outperform the pound despite ongoing political tremors across the region.

• Coming up today we have UK Halifax HPI.
• This is followed by the minutes from the last ECB meeting.
• Canadian building permits then follow at 13.30, with US unemployment claims released at the same time.
• Fed chair Yellen then speaks at 22.30.

Trade Idea: 

• With the yen on a surge and the pound struggling for traction, the GBP/JPY could have further to fall.

• A good way to play this is a LOWER trade predicting that the GBP/JPY will close below 153.00 in 14 days for a potential return of 148%.

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