Today’s Trading Plan – EURGBP and EURJPY

*Good morning/afternoon everyone!*

The U.S. dollar is trading slightly lower against all of the major currencies this morning with the exception of USD/JPY, which is unchanged. However it should catch up during the NY session as yields are higher this morning and Fed Presidents Bullard, Mester and Powell will be speaking. We know where Bullard stands (he thinks the rate hike path is too aggressive) but Mester and Powell who are hawks could talk up the dollar. Sterling is up strongly this morning thanks to the uptick in U.J. rates. Markets like that PM May will be allowing EU citizens to remain the UK post Brexit as she begins to cave to the EU demands. We are still waiting for the coalition agreement to be formed and there’s talk that May will have to accept the DUP demands after “secret Labour and Liberal Dem talks.” Euro is trading higher this morning despite softer German PMIs. The Canadian dollar is in play this morning with CAD CPI scheduled for release. Although it is trading lower AUD and NZD are firm.

*The MAIN THEMES I see today are*

+EUR
+AUD
+NZD
-CHF

neutral CAD before data but ultimately bearish

*Trading Biases*
These will change after US data

+USD, +EUR, +AUD, +NZD,
-CHF, -CAD
Looking to sell GBP rallies

*Today’s Potential Ideas*

1. Buy EURJPY at market 124.21, Stop at 123.71, Target 124.51
2. Buy EURGBP at market now 0.8770, Stop at 0.8720, Target 0.8800

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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