*Good morning/afternoon everyone!*

Most of the major currency pairs are under pressure this morning after yesterday’s sell-off in U.S. equities. Although Asian and European stocks were flat investors remain nervous about softer U.S. data and political uncertainty in the Trump Administration. Larry Kudlow is widely expected to be named Gary Cohn’s replacement today but Attorney General Jeff Sessions could be the next one to go. USD/JPY is under the greatest pressure but 105.50 is important support. If the market interprets Kudlow’s nomination as positive for the risk, that level will hold rather than break. The euro is trading heavy after ECB President Draghi’s dovish comments but its losses are moderate compared to some of the other major currencies – on a flow basis it looks like it wants to take another trip below 1.2350. Sterling is quickly closing in on 1.3900, an important support level. All 3 of the commodity currencies are trading lower this morning with the Australian dollar leading the slide. The New Zealand dollar is surprisingly resilient considering the market’s initial disappointment with Q4 GDP. USD/CAD is on the move again this morning and eyeing another run to 1.30. We don’t think this level will break but the pair could come close to testing it.

*The MAIN THEMES I see today are*

-EUR
-AUD
-CAD
+JPY

*Trading Biases*

-EUR, -GBP, -AUD, -CAD, -NZD
+JPY, +CHF
neutral USD (-USDJPY but +USD vs. other currencies)

*Today’s Initial Trades*

Here’s the summary –

1. Sell AUDCHF at .7423, Stop at .7451, Target .7395
2. Sell EURJPY at 130.88, Stop at 131.16, Target 130.60
3. Buy USDCAD at 1.2369, Stop at 1.2941, Target 1.2997
4. Sell AUDUSD at .7853, Stop at .7881, Target .7825

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