*Good morning/afternoon everyone!*

Currencies are off to a slow start this morning but with U.S. traders back from their long weekend holidays and the U.S. Senate poised to vote on tax reform, this should be an active and busy week for the FX market. We also have a confirmation hearing for Powell, a speech by Yellen, the BoE financial stability report and the possibility of Brexit headlines. The greenback is trading slightly lower across the board as yields give up early gains. This weakness softness should continue as long as there are no positive headlines on taxes this morning. New home sales are due for release and while we think the data could be stronger given the rise in existing home sales, the impact on the greenback should be limited. USD/JPY is very weak and a break of 11.00 would target the 110.50 area. The EUR/USD remains bid though 1.1950 could be a tough barrier to crack. Commodity currencies are stronger across the board and this outperformance is likely to continue in the NY session.

*The MAIN THEMES I see today are*

-USD
+EUR
+GBP
+CAD
+NZD

*Trading Biases*

-USD
+EUR, +GBP, +CAD, +AUD, +NZD
Neutral CHF

*Today’s Initial Trades*

1. Sell EURGBP at market now .8944, Stop at .8972, Target .8916
2. Sell USDJPY at market now 111.15, Stop 111.43, Target 110.87
3. Sell EURCAD at market now 1.5139, stop at 1.5167, Target 1.5111
4. Buy AUDCAD at .9691, Stop at .9663, Target .9719

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