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*Good morning/afternoon everyone!*
All major markets are back online today but trading should still be quiet with many senior dealers off for the entire week. The U.S. dollar is on its back foot, trading lower against all of the major currencies including the Japanese Yen. A decline in U.S. yields and the prospect of a weaker consumer confidence report is underpinning the currency. Euro on the other hand is eyeing 1.19 and we think it could test and break this level in today’s in low liquidity trade. Sterling is also above 1.34 but the best performers continue to be AUD and NZD which have found their way to fresh 2 month highs. Risk appetite, higher commodity prices and end of year profit taking are the main drivers behind the latest moves. The Canadian dollar is also pressing higher and this move has meant USD/CAD has not seen a rally in 6 trading days. However with oil prices falling this morning, the pair could find support near this month’s low of 1.2624.
*The MAIN THEMES I see today are*
+EUR, +GBP, +CHF
mildly +NZD, +CAD
neutral USD and USD
*Today’s Initial Trades*
1. Sell USDCHF at market now .9890, Stop at .9918, Target .9862
2. Buy EURUSD at 1.1891, Stop at 1.1863, Target 1.1919
3. Buy CHFJPY at 114.49, Stop at 114.21, Target 114.77
Close ALL open day trades by 10:20AM NY / 15:20 GMT