*Good morning/afternoon everyone!*

Don’t be fooled by the rally in USD/JPY this morning, the U.S. dollar is actually trading lower against all of the other major currencies. 10 year yields are pretty much flat which should extend the pressure to USD/JPY. Sterling is up strongly this morning on the back of stronger inflation data. Right behind it is the New Zealand dollar which is trading well ahead of this week’s GDP report. UK election troubles should cap gains in GBP/USD so while we have exited our GBPCHF trade (waiting to sell at higher levels), if you have the risk tolerance, GBP/JPY should fall back down to 139.00. The best performing currency today is the Canadian dollar which extended its gains after BoC Wilkins speech on Monday – rallies to 1.33 should be sold for a move down to 1.32.

*The MAIN THEMES I see today are*

USD weakness
NZD strength
CAD strength
Fade GBP

*Trading Biases*
These will change after US data

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

*Today’s Potential Ideas*

Yesterday’s short AUD/CHF trade at 0.7296 still looks good but if you want to flatten out for new opportunities, its basically breakeven

Sell USD/CAD at market now 1.3264, Stop at 1.3314, Target 1.3234
Place Order to Buy EUR/GBP at 0.8773, Stop at 0.8723, Target 0.8803

AUDJPY also looks like an interesting short