Today’s Trading Plan 07.07.2017 – LIVE Trading NFP

Swing

*Good morning/afternoon everyone!*

Today is non-farm payrolls day so we are NOT initiating any new #2 trades but there’s no doubt that the dollar is strong going into the jobs report. Instead, we’ll be LIVE trading NFP starting 8:15AM NY Time / 12:15 GMT.

With USD/JPY racing to a high of 113.85 overnight, investors have completely forgotten about yesterday’s softer ADP report. This sentiment is shared by bond traders who have taken yields slightly higher this morning. A lot is at stake today -- if non-farm payrolls miss, Yellen’s credibility becomes a serious issue and investors will dump dollars ahead of her semiannual testimony on monetary policy and the economy next week. If they are strong, USD/JPY should break 114 and hit its 2 month high of 114.37.

After yesterday’s strong move, euro is hanging tight ahead of NFPs. If it dips, we’ll be looking to buy. The worst performing currency this morning is GBP, which was hit hard by softer data. As we said when we laid out our -GBP #1_easy_2follow_trades, data is not confirming the hawkish rhetoric of BoE officials. Further losses are likely, but we’ll have to see how NFPs fare first.

Canada will also be releasing its labor market numbers this morning along with IVEY PMI later in the day -- these numbers will shape expectations for next week’s Bank of Canada meeting.

*The MAIN THEMES I see today are*

neutral USD, CAD ahead of labor data
-GBP
+EUR
+AUD
-NZD

*Trading Biases*
These will change after US data

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

*Today’s Potential Ideas*

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

BK – New EUR/USD 10.02.2015 +115

Swing

10/22 Trade closed for +115

10/9/2015 Update -- First Entry at 1.1370 TRIGGERED

BK -- EUR/USD Big Trade Orders

Place Order to Sell 1 Lot EUR/USD at 1.1370

Place Order to Sell1 More at 1.1570

Stop for ALL 1.1778

We are laying out a short EUR/USD order post NFP. October is off the table but we are still looking for the Fed to raise rates in December. EZ data has been terrible and we have a number of German reports that should show ongoing weakness and a persistent need for the ECB to keep monetary policy easy.