Good morning/afternoon everyone!
We have no #2 trades this morning because Mondays are usually reversal and not flow days. Yet I still wanted to share my thoughts —
After selling off aggressively at the start of Asia, the U.S. dollar is off its lows heading into North American trade. Investors were caught wrong footed at the end of last week and when the markets opened on Sunday, dollar selling continued. With that in mind, we are watching yields closely as the early decline in 10 year rates suggests that there may not be much more to USD/JPY’s recovery. This is a big week for euro and while we lean towards EUR weakness, today’s rise in German yields could limit the slide in EUR/USD. None of the major currencies are seeing much action this morning but the Yen crosses are down across the board. We like buying Canadian dollars after Friday’s strong Canadian economic reports and the rise in oil.
Swing trades that I am eyeing include -USDCAD, -EURCAD, -AUDCAD and -EURGBP
*The MAIN THEMES I see today are*
-USD, -AUD, -EUR
+CAD, +GBP, +JPY, +CHF
Close ALL open day trades by 10:20AM NY / 15:20 GMT