USD/CHF, CAD/JPY And USD/CAD - The Pairs to Range Trade this Week

Event Risk US and Switzerland
Trading Tip - These are the event risks that are the most important to watch in the week ahead. Data expected to be positive for USD/CHF >> Concentrate on Buying Opportunities, avoid Shorts ahead of the Swiss releases.
US – From the US, the data is limited. Only the ISM non-manufacturing indicator is attached a market-moving status. However, a number of speeches by policy officials increases the probability of a comment on monetary policy or the economy.
Switzerland – The Swiss calendar is unusually busy. Unemployment and consumer spending will be particularly important for monetary policy makers since the SNB is seeing a slow down in growth. Inflation is within the SNB’s tolerance band, leading it to wear away future hike potential.


Event Risk Canada and Japan
Trading Tip - These are the event risks that are the most important to watch in the week ahead. Data is expected to be positive for CAD/JPY. If buying the bottom of the range, sell even if unmoved by the week’s end. Meeting at end of the week could anchor pair, play only one swing before backing away from pair by Friday.
Canada – The Canadian calendar is pocked with indicators that could become an issue if they print surprises. Manufacturing activity has garnered interest after its contraction in December, and the housing market has shown signs of following its US equivalent. However oil will still be key if these indicators print in line.
Japan – Front end of the Japanese calendar is light on risk, but it quickly because a mine field. Econ Watchers and Machine Orders may offer risk, but concern over the G-7 Meeting should anchor the reaction. The G-7 should be avoided at all costs as there is heavy expectation that European Finance Ministers will try to pressure the BoJ to intervene to boost their cheap currency.

Event Risk US and Canada
Trading Tip - These are the event risks that are the most important to watch in the week ahead. >> Concentrate on Buying Opportunities, Avoid Selling Opportunities the hours before the Canadian news release.
Canada - The Canadian calendar is pocked with indicators that could become an issue if they print surprises. Manufacturing activity has garnered interest after its contraction in December, and the housing market has shown signs of following its US equivalent. However oil will still be key if these indicators print in line.
US – The US calendar is relatively light except for the service sector ISM on Monday and speeches by Bernanke and Paulson on Tuesday. Wait for post service sector ISM data and best to avoid the trade right around Bernanke and Paulson’s Speeches