Mar 24th 2016: Dollar Pulling The Strings

• This morning, the US Dollar continues to reassert its dominance over forex markets, setting up its fifth up day in succession. This comes as world stock markets hit a squall, going sideways or backwards this week. The USD/JPY has risen during this time as traders push the pair back into the middle of the recent trading range.

• By contrast, the euro has endured a poor week as the Belgium terror attacks add to the general sense of uncertainty facing the continent. At the same time, economic data has been lacklustre.

• The euro has continued to outperform the British pound though as Brexit uncertainty combines with slowing economic growth.

• Meanwhile, the Australian and New Zealand dollars have backed off the pace.

Coming up today: 

• Coming up today we have UK retail sales at 09.30, released alongside BBA mortgage approvals.
• At 10.15, we get European targeted LTRO.
• Then at 12.15, FOMC member Bullard speaks.
• Today’s main item is US core durable goods orders, with unemployment claims released at the same time.

Trade Idea: 

• The pound is struggling as interest rate expectations continue to push back.

• A good way to play this is a LOWER trade predicting that the GBP/USD will close below 1.4000 in 15 days time for a potential return of 160%.

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