Majors stabilise as US Treasuries take USD higher

Majors stabilise as US Treasuries take USD higher

Today’s focus turns to the CAD

Majors stabilize

After a hectic Asian session yesterday the majors stabilize and have finally settled back down and they look a lot more relaxed after being taken out of the yard for a gallop in the top paddock, so to speak.

The USD Index continues to edge higher following US 10 treasury yields which are now at 3.1150. Remember all the hype about them hitting the psychological 3.00% mark….so much for that hype now, it looks like just the beginning.

Now there’s not a lot on the calendar today so I suspect we’ll have a different trading day today, then yesterday’s ‘smash & grab’ session.

There’s really only one major data release to focus on and that’s the Canadian CPI & Retail Sales data.

Other than that stick your technical strategies, focusing on short-term momentum, which does appear to be fading on most major pairs.

Check our Next Best Trades Watchlist for full details as to which specific pairs we are focusing on.

Asian Session

We have Japanese CPI nationwide numbers due for release. This data is usually secondary to the Tokyo CPI data, but with nothing out today it does have a chance to ‘inspire’ traders….but I’m not holding my breath.

Take the time to relax and enjoy your day.

European Session

We have some low tier peripheral data due in Germany & the Eurozone but it’s not exactly market moving.

We may see some EURUSD profit-taking ahead of the weekend, so I can definitely see a squeeze higher towards 1.1900 resistance.

But that may be a stretch if the Italians continue talking about ‘wiping their $250 Billion Euro debt to the ECB.

North American Session

This is the main game of the day with all eyes on the Canadian CPI & Retail Sales data.

I still favor the downside because that goes with current momentum for USDCAD and it also follows the rising Oil price.

The CPI is the main number to trade with the retail sales data the secondary ‘confirmation’.

By that I mean, for example, if we get strong CPI data we need the retail sales to come out as expected or at the very least also slightly stronger, and that will confirm the direction.

It should be a cracking opportunity to close the week out.

Technical Set Up – What’s Happening with the Majors

Majors stabiliseCheck our Daily Analysis for detailed analysis of the Major currency pairs.

Today’s Fundamental Drivers

Majors stabilise

Plan the Trade, Trade the Plan!

The idea of our “Market Insight” is to give you some guidance with your daily preparation.

Your Daily Analysis needs to become habitual – For full guidance on our daily routine click here.

Make sure you don’t waste unnecessary time in front of the screens.

Remember you need to be fresh, confident and ready to trade and by sitting aimlessly in front of your screens you will become stale and uncertain.

The key to your success: Isolate the opportunities that work for you and focus on them.

Don’t worry about things that you can’t make…..chasing them will only cause problems (tiredness & irrational behavior will take over).

Tune up your charts & get ready to trade…..see you in the Virtual Trading Desk!

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