WEDNESDAY DATA (Trade reaction):

• 0600 JAP leading economic index up to 96.6 WTE
• 0700 GER Trade Bal flat at 13.7B BTE
•  0745 FRA Trade Bal up to -5.7B BTE
• ???? UK 30 yr bond BTE = long GBP, WTE =short GBP
• 1800 US 10yr bond BTE = long USD, WTE =short USD

NEWS:

• US aims to get budget back in surplus to give RBA maximum room on rates.
• Asia closes down on Greek uncertainty.
•  EU futures gain.

Initial Thought: Clearly uncertainty and scare mongering remains in the market I would imagine the purchase of USD to continue.

Correlation: EURUSD high positive w GBPUSD, EURJPY and XAUUSD. High negative w USDCHF.

Leading Pair: XAUUSD
ID (Emotional Bias/reaction to news): Buy USD
Watch out for: UK and US bond sales
Plan: Trade w ID direction wherever possilbe, paying close attention to when bond sales are due… UK bonds are tentative so ensure Bloomberg is on. US aren’t due until 1800.

Potential Trades: NA for the time being.

Personal Notes:  Although the overnight trend is clear (Long USD) I am less certain of daily direction as the trend seems to be getting tired. Will keep both H1 and M15 charts open for further clues. Hope you all have fun.