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*Good morning/afternoon everyone!*
Today is a very important day in the FX market as we have the BoE, BoC and RBNZ Financial Stability reviews. The Bank’s England’s review saw all 7 banks pass the stress test which led to a brief rally in GBP/USD. The BoE said the tests show all banks can withstand a disorderly exit but acknowledged there would be costs if Brexit is not smooth. However Ireland’s troubles and the mess they create for Brexit continues to pressure sterling lower. A handful of US economic reports are due for release today (the most important is consumer confidence), Fed Chair nominee Powell’s confirmation hearing begins and the US Senate Finance Committee could announce a vote on the Senate version of the tax bill at any time, stealing Powell’s thunder. The U.S. dollar is trading higher against the Yen and European currencies but lower against the commodity currencies. The BoC’s Financial review isn’t expected to reveal anything positive for Canada given recent data deterioration. Euro is on the back foot and likely to remain so for most of the day.
*The MAIN THEMES I see today are*
-EUR, -GBP, -CHF, -CAD
*Today’s Initial Trades*
1. Buy USDCAD at 1.2792, Stop at 1.2762, Target 1.2820
2. Sell GBPCHF at 1.3064, Stop at 1.3092, Target 1.3036
3. Sell EURAUD at 1.5620, Stop at 1.5648, Target 1.5592
4. Sell EURUSD at 1.1889, Stop at 1.1917, Target 1.1871
Close ALL open day trades by 10:20AM NY / 15:20 GMT