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*Good morning/afternoon everyone!*
This may be a busy week for the U.S. dollar but once again, we are starting the morning with no clear consistency in the greenback’s performance. The dollar is trading lower against the Japanese Yen and Canadian dollar but higher versus euro, sterling, Swiss Franc and Australian dollar. All of this can be explained by the slide in global equities which is causing the Yen to rise across the board and high beta currencies to fall. Asian equities fell sharply overnight, European stocks are down and the Dow is pointing to a lower open. The most important piece of US data to watch this morning is ADP but the impact of this report is generally short-lived. The Bank of Canada meets this morning and we believe that the loonie will trade lower into and out of BoC. Euro and sterling are both on the back foot but sterling seems to be holding at these levels in the hopes of further Brexit developments. AUD gave up earlier gains following last night’s softer GDP report while NZD continues to sing to its own tune, rebounding on nothing more than profit taking.
*The MAIN THEMES I see today are*
-EUR, -AUD, -CHF
+CAD, +JPY, +NZD
mildly +USD, +GBP
*Today’s Initial Trades*
1. Sell USDCAD at market now 1.2669, Stop at 1.2697, Target 1.2641
2. Sell NZDJPY at 77.27, Stop at 77.55. Target .7699
3. Sell EURUSD at market now 1.1811, Stop at 1.1839, Target 1.1783
4. Sell AUDUSD at market now .7586, Stop at .7614, Target .7558
Close ALL open day trades by 10:20AM NY / 15:20 GMT