Today’s Trading Plan – EUR/USD and CAD/JPY

*Good morning/afternoon everyone!*

European currencies are trading sharply higher this morning as EUR and GBP recover from yesterday’s flash crash. Broad based U.S. dollar strength is also helping the move as risk appetite improves. The main focus today will be on the Canadian dollar as retail sales and CPI are due for release but we also have Fed speak (Bullard at 9:15am NY and Williams at 1:40pm NY). Given the sharp rise in the IVEY PMI index and the decline in retail sales the previous month our bias is to the upside for both CAD reports. If the data is good, USD/CAD should tumble all the way down to 1.35. U.S. rates are up slightly this morning which explains why USD/JPY has not extended its losses. AUD and NZD are poised to continuing underperforming its peers.

*The MAIN THEMES I see today are*

EUR,GBP strength
AUD, NZD underperformance
Possible CAD strength

*Currencies we plan on day trading and the direction*
*These could change during the day, but for now

We will be trading around these themes --

+EUR, +GBP
-AUD, -NZD
possible +CAD

*Trading Biases*
These will change after US data

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

:triangular_flag_on_post: *Starting Trades*

Buy CADJPY at market now 82.10
Stop at 81.50
Target 82.40

Buy EURUSD at market 1.1169
Stop at 1.1119
Target 1.1199

Swing

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