Good morning/afternoon everyone!

It may be a quiet morning in the foreign exchange market but the weakness we saw in the dollar last week carried over this morning as the greenback is trading lower against all of the major currencies this morning. The market is still disappointment with Yellen and pleased with Draghi.

However with Donald Trump focused on dealing with Hurricane Harvey, the lack of a reaction to North Korea’s launch of 3 short range ballistic missiles into the Japanese sea helped USD/JPY avoid immediate losses at the Asia open.

Harvey has caused significant damage in the region and while it is now a Tropical Storm, more rain could lead to more flooding in the coming days. While oil prices are lower this morning, gas prices hit 2 year highs. There should be some catch in oil today.

The euro remains one of the best performing currencies although AUD is also seeing quite a bit of demand as oil and copper prices tick higher. After hitting a high of 1.2945, the reversal in GBP/USD reflects the pair’s overall weakness and suggests that we could see further GBP underperformance vs. EUR and possibly even the commodity currencies.

The MAIN THEMES I see today are:

-USD
+EUR
+AUD
+CAD

Trading Biases

-USD
+EUR, +AUD, +CAD, +CHF, +JPY
mildly -GBP
neutral NZD

Today’s Ideas

1. Buy EURUSD at market now 1.1938, Stop at 1.1898, Target 1.1958
2. Buy AUDUSD at market now 0.7942, Stop at 0.7902, Target 0.7962
3. Buy AUDNZD at market now 1.0965, Stop at 1.0925, Target 1.0985

Cancel ALL pending orders by 3:30PM NY / 19:30 GMT / 5:30AM AEST
Close ALL open day trades by 4PM NY / 20 GMT / 6AM AEST