*Good morning/afternoon everyone!*

If the price action in the FX market on Monday can be characterized by consolidation, the last 12 hours is best described by the word volatility. The dollar rallied hard during the Asian trading session into Europe but collapsed sharply after the London open. It is trading heavily as the NY session begins but trying to recover its losses as pairs like EUR/USD appear to be topping while USDJPY and USDCAD appear to be bottoming. There’s been zero fundamental catalyst but for the past few weeks its lived up to its title of Turnaround Tuesday. We’re also nearing the end of the month and after some very strong moves in currencies, portfolio rebalancing could be affecting FX trade. Eurozone data was mostly in line with expectations with the EZ economy expanding by 0.6% in Q4. UK mortgage data was slightly weaker. Consumer confidence and house prices are scheduled for release this morning but the main focus will be this evening’s State of the Union Address by President Trump -- traders may look to unwind positions ahead of this big event.

*The MAIN THEMES I see today are*

+GBP
+USD
-AUD
-CAD

*Trading Biases*

+USD, +GBP
-AUD, -CAD, -NZD
mildly +EUR, +JPY (+USDJPY)
neutral CHF

*Today’s Initial Trades*

1. Sell AUDJPY at 87.98, Stop at 88.26, Target 87.70
2. Sell EURGBP at .8803, Stop at .8831, Target .8875
3. Buy USDJPY at 108.64, Stop at 108.37, Target 108.92
4. Sell AUDJPY at 87.98, Stop at 88.26, Target 87.70

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