Kathy’s NY Trading Calls 08.30.2017 – EURUSD, NZDJPY, EURGBP

*Good morning/afternoon everyone!*

After yesterday’s dramatic recovery the U.S. dollar is continuing to trade higher against all of the major currencies this morning. Stock futures are pointing to a steady to higher open as investors look forward to President Trump’s tax reform speech. Although the nation’s focus is on the recovery efforts in Houston, it appears that the President won’t miss this opportunity to distract investors and inspire optimism with the talk of tax cuts. Yet with no Congressional progress on tax reform , the President’s talk will be just -- goals he hopes Congress will support instead of confirmed policy action. However the market usually responds positively to tax cut talk and thats exactly what we’re beginning to see today. USD/JPY traded above 110 during the early European trading session and could make another run above this level in North American trade. While we believe that the dollar should be trading lower given the economic costs of Harvey, the debt ceiling debacle and the Fed’s cautious views, we have to respect today’s strength. EUR/USD is flirting with 1.1950, GBP and AUD are stronger but the worst performer is NZD, which came under assault after RBNZ Governor Wheeler talked down the currency.

*The MAIN THEMES I see today are*

+USD
-NZD
-CAD
-CHF

*Trading Biases*

+USD
-NZD, -CAD, -EUR, -JPY, -CHF
mildly +AUD, +GBP

*Today’s Ideas*

1. Sell EURGBP at 0.9241, Stop at 0.9281, Target 0.9221
2. Sell EURUSD at market now 1.1948, Stop 1.1978, Target 1.1928
3. Sell NZDJPY at market now 79.59, Stop at 79.89, Target 79.39

Cancel ALL pending orders by 3:30PM NY / 19:30 GMT / 5:30AM AEST
Close ALL open day trades by 4PM NY / 20 GMT / 6AM AEST

Swing

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