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*Good morning/afternoon everyone!*
The U.S. dollar is trading higher against all of the major currencies this morning except the Japanese Yen, though USD/JPY has found support above 105.50. What’s interesting about this morning’s move is that its not necessarily driven by risk aversion as European stocks trade higher and Dow futures point to a only a modestly lower open. The markets are slightly nervous about the elections in Europe, encouraged by the stronger PMI data in the UK and eager to take USD/CAD to fresh 8 month highs. The Australian and New Zealand dollars are also under pressure but unlikely to see any big movements until U.S. stocks move significantly in one direction or another. This is a big week in the FX market with 4 central bank rate decisions on the calendar (RBA, BoJ, ECB, BoC) and the U.S. non-farm payrolls report. Today, the ISM non-manufacturing index will be released and its important because its a leading indicator for NFP. Trade wars are still on everyone’s minds but with no new antagonism from China and other foreign nations over the weekend , it has taken a backseat to Europe’s political developments.
*The MAIN THEMES I see today are*
-EUR, -CAD, -AUD, -NZD, -CHF
*Today’s Initial Trades*
Here’s the summary –
1. Sell EURGBP at .8904, Stop at .8932, Target .8876
2. Sell EURUSD at 1.2299, Stop at 1.2327, Target 1.2271
3. Sell AUDUSD at .7746, Stop at .7774, Target .7718
4. Buy AUDCAD at 1.0010, Stop at .9982, Target 1.0038
Close ALL open day trades by 10:20AM NY / 15:20 GMT