Today’s Trades 12.20.2017 – CADJPY, EURAUD, GBPAUD

*Good morning/afternoon everyone!*

There is a very good chance that we’ll final Congressional approval of the tax reform bill today. The House passed their version yesterday, the Senate passed their version hours later and now the House will take a final vote after the Senate ruled that 2 provisions in the bill did not comply with budget reconciliation rules and were removed from the Senate bill. Either way, the bill is done and poised to land on President Trump’s desk before Christmas. As a result, the dollar is trading higher against the Yen, euro and Swiss Franc. It is struggling versus GBP and the commodity currencies but sterling could be vulnerable to losses after EU Brexit Chief negotiator said UK won’t be covered by international agreements after they leave the European Union. The resilience of the commodity currencies are astounding, particularly after the weak New Zealand trade balance and decline in dairy prices but that could be a testament to tax reform’s positive impact on risk appetite. Looking ahead, only the U.S. new homes sales report is scheduled for release, so taxes and risk appetite will continue to drive FX flows. With the Dow eye 25K, we could see USD/JPY push to 113.50

*The MAIN THEMES I see today are*

+USD
-GBP
-JPY
+AUD
+CAD

*Trading Biases*

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

*Today’s Initial Trades*

1. Buy CADJPY at 87.95, Stop at 87.67, Target 88.23
2. Sell GBPAUD at 1.7452, Stop at 1.7480, Target 1.7424
3. Sell EURAUD at market now 1.5433, Stop at 1.5461, Target 1.5405

Close ALL open day trades by 10:20AM NY / 15:20 GMT

Swing

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