Today’s Trades 02.06.2018 – EURGBP

*Good morning/afternoon everyone!*

With Dow futures pointing to another 300 pip drop at the open (this will change as we get closer to 9:30), earlier consolidations have given way to more liquidation. European currencies are falling quickly with EUR/USD extending its losses beyond 1.24 and GBP/USD eyeing 1.39. The Australian dollar is the weakest courtesy of last night’s softer data and neutral RBA. The resilience of the New Zealand dollar continues to surprise us as it remains the strongest performer ahead of NZ’s dairy auction, tonight’s labor market report and tomorrow’s RBNZ rate decision. With UK and German yields pointing sharply lower, further losses in EUR and GBP are likely. The market’s appetite for dollars should be limited which means the greatest pain could be felt in Yen crosses. We have the US and Canada’s trade balance along with the IVEY PMI report scheduled for release today but stocks and risk appetite should drive FX trade. With all this in mind, beware of turnaround Tuesday risk -- after 1700 points of losses in the Dow, rebound risk is growing.

*The MAIN THEMES I see today are*

-EUR
-GBP
+JPY
-AUD

*Trading Biases*

-EUR, -GBP, -AUD, -CHF
+JPY, +USD (but -USDJPY)
mildly -NZD
neutral CAD,

*Today’s Initial Trades*

1. Buy EURGBP at .8883, Stop at .8855, Target .8911

EURGBP -3
GBPNZD +14
AUDJPY +20
USDJPY +1
USDJPT -19
Total +13

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

Swing

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