Its another mixed day for the U.S. dollar, which is trading lower against European currencies and higher versus the Japanese Yen and comm dollars. AUD and NZD are singing to their own tunes with weaker data and political troubles hampering their gains. CAD on the other hand remains weak ahead of the Bank of Canada’s monetary policy announcement with USD/CAD breaking above 1.2700.
GBP is benefiting from stronger than expected Q3 GDP and the EURO is holding bid ahead of Thursday’s European Central Bank monetary policy announcement. We’re finally beginning to see some big moves in the FX markets with many EUR and GBP crosses hitting multiyear highs driven by the divergence between the economic and monetary policy outlooks for Europe vs. Canada, Australia and New Zealand. Looking ahead we expect these divergences to continue.
We’ll be live trading Bank of Canada’s rate decision with everyone beginning at 9:45 AM NY / 13:45 GMT. Usual daily webinar link.
*The MAIN THEMES I see today are*
+USD
+EUR
+GBP
-AUD
-NZD
*Trading Biases*
+USD, +EUR, +GBP,
-AUD, -NZD, -CAD, -JPY
mildly -CAD
*Today’s Ideas*
1. Sell NZDUSD at market now .6884, Stop at .6914, Target .6864
2. Buy EURUSD at market now 1.1778, Stop at 1.1748, Target 1.1798
3. Buy GBPJPY at 151.21, Stop at 150.91, Target 151.41
Cancel ALL pending orders by 3:30PM NY / 19:30 GMT / 5:30AM AEST
Close ALL open day trades by 4PM NY / 20 GMT / 6AM AEST
