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*Good morning/afternoon everyone!*
The U.S. dollar is trading lower against all of the major currencies this morning with the exception of the Japanese Yen. Although the greenback was hit hard in the past 24 hours by President Trump’s criticism of the Fed, they will not affect monetary policy. But it was the perfect excuse for USD bulls to abandon their positions. In the Asia session overnight, the selling gained momentum after EUR/USD broke through 1.15 – stops were triggered and EUR/USD rallied quickly, taking all of the major currencies higher along with it. However the rally stopped right at the 20-day SMA for EUR/USD and its not clear if the pair will have the momentum to extend beyond that level. The best performing currency this morning is the New Zealand dollar but NZD is vulnerable to losses if dairy prices fail to rise at today’s auction. AUD and CAD are also higher with the loonie likely to gain traction in the North American session for a potential test of 1.30. Last night’s RBA minutes had very little impact on AUD. Brexit talks are underway this morning so GBP could be vulnerable to headline risk but right now it looks like it wants to make a run to 1.2875. Stocks are up, yields are up and oil prices are moving higher – all signs of a risk on rally.
*The MAIN THEMES I see today are*
+AUD, +CAD +GBP, +EUR
mildly +NZD, +CHF
neutral USD but (+USDJPY)
*Today’s Initial Trades*
Here’s the summary –
1. Buy AUDJPY at 81.18, stop at 80.90, Target 81.46
2. Buy EURUSD at 1.1524, Stop at 1.1496, Target 1.1552
3. Buy CADJPY at 84.68, Stop at 84.40, Target 84.96
4. Sell EURGBP at .8978, stop at .9006, Target .8950
Close ALL open day trades by 10:20AM NY / 15:20 GMT