Today’s Trades 07.26.2017 – EURAUD, USDJPY

*Good morning/afternoon everyone!*

Its FOMC day and the dollar is finally retreating against the Japanese Yen. After yesterday’s Senate vote hysteria and the sharp rise in Treasury rates, yields are down this morning, causing USD/JPY to find resistance below 112. The greenback is steady versus EUR and CAD but the Franc is down strongly on a delayed reaction to SNB Jordan’s comment that the CHF is still significantly overvalued. Slightly stronger GDP growth in Q2 also lifted GBP but the move was limited by the slowdown in year over year growth. Last night’s softer Australian CPI report and comments from RBA Governor Lowe has caused AUD to underperform NZD -- Lowe said “we don’t need to move in lockstep with global peers as steady unemployment rate has allowed us to be patient.” He expects slow wage growth to remain for some time, making it difficult to generate 2.5% CPI. Although Q2 inflation was in line with expectations, higher power prices could push Q3 CPI higher but that would increase business costs. With that in mind, he did not aggressively talk down the currency, opting instead to say that it would be better if A$ is a bit lower, explaining the muted decline int he currency

Don’t forget we’ll be LIVE Trading FOMC starting 1:45PM NY Time / 17:45 GMT / 3:45 AM AEST

*The MAIN THEMES I see today are*

-AUD
+GBP
-CHF
mildly -USD

*Trading Biases*

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

*Today’s Potential Ideas*

1.Buy EURAUD at market now 1.4702, Stop at 1.4662, Target 1.4732
2. Place Order to Sell USDJPY at 111.77, Stop at 112.27, Target 111.57

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

Leave a Comment

Your email address will not be published. Required fields are marked *