*Good morning/afternoon everyone!*

The U.S. dollar is trading higher against all of the major currencies this morning but the modest increase in USDJPY suggests consolidation rather than a full blown recovery. Yields are up across the board which may be helping the dollar but with the yen pairs still depressed, currencies have not recouped with Treasuries or other fixed income markets for that matter. With all this in mind, the dollar was sold aggressively oversold last week causing many currencies to become overextended and these corrections are likely to continue during the North American session. This is a big week for the dollar with a FOMC meeting, non-farm payrolls report and State of the Union address from President Trump so there’s motivation for profit taking. Today specifically, personal income and spending numbers are due – they are likely to be mixed with wages up but spending softening in December . The weakest performing currency this morning is sterling and the strongest is the U.S. dollar followed by the Australian dollar. No reports were released from either country but U.K. yields are up the least this morning.

*The MAIN THEMES I see today are*

-EUR
-GBP
+JPY
+AUD
-NZD

*Trading Biases*

-EUR, -GBP
+JPY
mildly +USD but -USDJPY
mildly -AUD, -NZD, -CAD but relative strength

*Today’s Initial Trades*

1. Sell EURJPY at 134.82, Stop at 1.3510, Target 134.54
2. Sell EURAUD at 1.5315, Stop at 1.5343, Target 1.5287
3. Sell GBPUSD at 1.4072. Stop at 1.4100, Target 1.4044

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