Kathy’s NY Trading Calls 08.29.2017 – USDJPY, GBPUSD, EURCHF

*Good morning/afternoon everyone!*

The U.S. dollar is trading sharply lower this morning after North Korea fired a few missiles over Japan. The U.S. and Japan have called an emergency U.N. meeting to address the issue but we have not seen any fresh tweets from President Trump over the past 24 hours. But with South Korea responding by dropping test bombs near the DMZ, we can only imagine how much worse the situation can get. Nomura puts the odds of a North Korea war at 35%. Pressure and sanctions haven’t been working and the U.S.-South Korea’s decision to move forward with their annual games only further inflamed NK who showed a modicum of restraint earlier this month hoping for the same. This is the biggest story of the day and one that will dominate North American trade. The market is viewing this as a dollar issue and not a risk aversion issue but its really one in the same as NK poses a serious threat to Japan, South Korea, and the rest of the region. It may also be difficult for China to stay neutral with their close ties to NK. EUR/USD is above 1.20 and GBP has its eye on 1.30.

*The MAIN THEMES I see today are*

-USD
+EUR
+GBP
+AUD
+NZD

*Trading Biases*

-USD
+EUR, +CHF, +GBP, +AUD, +CHF, +JPY

*Today’s Ideas*

1. Sell EURCHF at market now 1.1365, Stop at 1.1405, Target 1.1345
2. Buy GBPUSD at market now 1.2954, Stop 1.2914, Target 1.2974
3. Sell USDJPY at 108.51, Stop 108.91, Target 108.31

Cancel ALL pending orders by 3:30PM NY / 19:30 GMT / 5:30AM AEST
Close ALL open day trades by 4PM NY / 20 GMT / 6AM AEST

Swing

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