Kathy’s Easy to Follow Trade – Close USDCAD at 1.26006

*Good morning/afternoon everyone!*

With no major U.S. economic reports on today’s calendar, there’s not much consistency in the performance of the dollar. The greenback is trading higher versus the Yen, euro and Australian dollar but is lower against sterling, the loonie and New Zealand dollar. What’s interesting about the overnight moves and this morning’s flow is that its counter to data. AUD for example is up despite softer employment numbers while NZD is down despite stronger CPI. GBP completely U-turned after selling off on the back of disappointing retail sales and CAD is stronger despite yesterday’s dovish Bank of Canada comments. The only explanation are yields -- UK and German rates are up sharply this morning, more so than Treasury yields. EURO remains strong and has its eye on 1.24.

*The MAIN THEMES I see today are*

+EUR
+USD
-JPY
+CAD

*Trading Biases*

+EUR, +USD, +CAD, +CHF
-JPY, -AUD, -NZD,
mildly -GBP

*Today’s Initial Trades*

Here’s the summary --

1. Sell AUDCAD at .9826, Stop at .9854, Target .9798
2. Sell AUDUSD at .7791, Stop at .7819, Target .7763
3. Buy CADJPY at 85.21, Stop at .8493, Target 85.49
4. Buy EURUSD at 1.2373, Stop at 1.2345, Target 1.2401

Close ALL open day trades by 10:20AM NY / 15:20 GMT

Swing

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