*Good morning/afternoon everyone!*

The U.S. dollar is starting the North American trading session lower against all of the major currencies but it is quietly recovering its losses, particularly against the Japanese Yen as U.S. stocks point to a positive open. Thanks to the early performance of U.S. equity futures and the overnight rallies in European and Asian stocks, today should be a day of improved risk appetite. This could benefit all of the yen pairs and drive the Swiss Franc lower. It should also be positive for risk currencies like the EUR and AUD but on a technical basis, the rallies are meeting resistance which suggests that the USD could lead the gains rather than the demand for risk. We had initially sold EURGBP but exited on Brexit noise. Corbyn’s comments that the UK is still in the dark over May’s Brexit plans and will not be joining a customs union after Brexit is a threat to the currency’s earlier gains. The euro is at the upper end of its 4 day range and Mario Draghi’s speech at 9AM NY could affect how the currency trades. The commodity currencies are also beginning to give up their earlier gains as well with CAD and AUD the weakest performers. Today’s U.S. new home sales report is not expected to have a significant impact on currencies as investors wait for Fed Chair Powell’s testimony on Tuesday.

*The MAIN THEMES I see today are*

+USD
-JPY
-CHF
-AUD
-NZD

*Trading Biases*

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

*Today’s Initial Trades*

Here’s the summary –

1. Buy USDCHF at .9344, stop at .9315, Target .9372
2. Sell AUDUSD at .7861, Stop at .7889, Target .7833
3. Buy EURJPY at 131.68. Stop at 131.40. Target 131.96

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