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*Good morning/afternoon everyone!*
The U.S. dollar may be trading higher against most of the major currencies this morning but the rally is getting overextended and is running up against key resistance. The big news that we expected this week from the Senate is on tax reform and so far, they have voted to advance the bill in the Senate Budget Committee and to proceed with debates. Now the focus is on the final vote which is expected to happen late Thursday or Friday. There are still a host of lawmakers who haven’t said they will back the final bill so it remains to be seen how quickly they will be able to pass it as the vote is still too close to call.
This morning’s U.S. economic reports from personal income, spending to Chicago PMI are expected to be more negative than positive for the greenback. The euro on the other hand appears to be finding support above 1.18 thanks to stronger than expected German labor data. Sterling extended its gains on reports that an agreement on the Irish border is near. The OPEC meeting dominates CAD flows today while AUD and NZD are trying to find a near term bottom.
*The MAIN THEMES I see today are*
+AUD, +CAD, +JPY
mildly +NZD, +EUR, +GBP
*Today’s Initial Trades*
1. Sell CHFJPY at market now 113.88, Stop at 114.16, Target 113.60
2. Buy AUDCHF at market now .7464, Stop at .7436, Target .7492
3. Sell AUDCAD at .9753, Stop at .9781, Target .9735
4. Sell USDJPY at 112.31, Stop at 112.59, Target 112.03
Close ALL open day trades by 10:20AM NY / 15:20 GMT