Today’s Trading Plan 07.10.2017 – AUD, GBP, CAD

*Good morning/afternoon everyone!*

We are starting the week with the U.S. dollar trading higher across the board but the strength of the dollar could be challenged by U.S. rates which are lower this morning. Janet Yellen’s semi-annual testimony is the main focus this week and with non-farm payrolls rising enough for the Fed Chair to justify her hawkishness, declines in the dollar will attract buyers. Stronger than expected German trade data failed to lift EUR/USD but the single currency is up strongly against all the major currencies this morning. The Yen and Canadian dollars are the weakest with the former pressured by Bank of Japan Governor Kuroda’s comment that it is premature to talk exit. The Bank of Canada meets this week and the decline in USD/CAD should be nothing more than short covering after an extended move as a quarter point hike is widely skeptical. We’re skeptical but there’s no reason to fade CAD rally until the BoC disappoints.

*The MAIN THEMES I see today are*

+USD
+CAD
-AUD
-NZD

*Trading Biases*
These will change after US data

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

*Today’s Potential Ideas*

1. Sell AUDUSD at market now 0.7590, Stop at 0.7650, Target 0.7560
2. Sell GBPUSD at market now 1.2884, Stop at 1.2934, Target 1.2854
3. Place Order to Buy CADCHF at 0.7455, Stop at 0.7405, Target 0.7485

All pending orders canceled by 3:30PM NY / 19:30 GMT
All open day trades closed by 4PM NY / 20 GMT

Swing

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