Good Day,

I had a bad day trading yesterday; my thought process on a different stance from RBNZ Wheeler on issues regarding the economy never materialized. I move my stop just before the news, I read a piece that looked to be very knowledgeable on what Wheeler was going to say, and I nearly took my trade off the table....hindsight what a beautiful thing.

Moving on.......

<span style="text-decoration: underline;"><strong>MARKET OVERVIEW:</strong></span>

Futures appear to be consolidating yesterdays losses, GOLD is marginally up and CRUDE concerns me from the USD/CAD long trade, That I have live at the moment plus from an inflation perspective. A little hint of inflation into the U.S. economy will keep Commodity currencies supported and my FUNDAMENTAL OUTLOOK will start to be revised.

A crude oil rally will cause waves on consumer spending as it is really a tax hike and it will affect consumer confidence. This does immediately hit outlooks and we have to watch this closely.

Additionally, right now we have a divergence....EUR, GBP, CHF and SEK are all performing opposite from CAD, AUD and NZD. USD is strong against non-commodity currencies.

An hour or so ago, at the request of Roger from the UK,  I tweeted up to date pressure charts positions on currencies where the short, medium and long term trends were aligned. Firstly, there were so many in the same direction, but secondly, the divergence was 100% apparent for all to see.

<span style="text-decoration: underline;"><strong>TRADES UPDATE:</strong></span>

My live trades are:

GBP/NZD: Almost back to square one and hedged again.....

GBP/USD: short...happy about this one.

USD/CAD: long...not so happy about this one at the moment. I may chop this one later today based on CRUDE prices.

<span style="text-decoration: underline;"><strong>TRADE OPPORTUNITIES:</strong></span>

Looking to short the NZD and AUD from higher levels.

AUD/NZD took a huge hit yesterday and looks hugely oversold. Looking to get long on the bounce.

The EUR short looks a great trade as it is not bouncing and EUR crosses are getting clobbered.....EUR/AUD, EUR/CAD, EUR/GBP, EUR/NZD, just be careful around 1.3500 in case we get a bounce.