Today’s Trading Plan – EURGBP, EURJPY, USDCAD

*Good morning/afternoon everyone!*

The U.S. dollar is trading higher against all of the major currencies except for the euro which is back above 1.18 thanks to stronger than expected German labor data. The resilience of the greenback is surprising after yesterday’s sharp reversal in Treasury yields but at the end of the day the moves are modest and a reflection of shifting interest rate expectations in Australia, New Zealand and the U.K. AUD and NZD are lower today while CAD manages to extend its gains. Sterling on the other hand is the worst performer as a surprise downward revision to GDP casts doubt on the Bank of England’s rosy, hawkish outlook for the economy. US personal income, spending, the PCE deflator and Chicago PMI are due for release this morning along with the revisions to the September University of Michigan consumer sentiment index. At the same time from Canada, July GDP numbers are on tap.

*The MAIN THEMES I see today are*

+EUR
-GBP
-AUD
-NZD
+CAD

*Trading Biases*

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

*Today’s Ideas*

1. Buy EURGBP at market now .8826, Stop at .8796, Target .8846
2. Buy EURJPY at 132.82, Stop at 132.52, Target 133.00
3. Sold USDCAD again at 1.2420, Stop 1.2450, Target 1.2400

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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