Hi Guys,

Welcome to another week on forex markets. This is the last week before the Christmas period so I expect there to be a bit going on early in the week and then light volume as we near the weekend.

There are some data points out of interest this week that might move markets around a bit. We have US GDP which is always important. The BOJ have their monetary policy statement and the RBA will be releasing their minutes.

However, my main interest is in the Trump Tax Cuts. There’s talk around that this might get pushed through as early as Tuesday. If that happens it’s going to be a massive boost to the US economy and that means the USD and stock market will likely rally.

Nothing is certain just yet, but I’ll be positioning myself to be bullish on the USD.

Forex Majors

AUD/USD – The AUD spiked last week, which was a little unexpected. I will still be looking to sell any further jumps.

EUR/USD – The Euro did a 180 at 1.1850. Looking for a move to 1.1700, however, we have some economic data to navigate.

USD/JPY – The Yen is staging a bit of a comeback along with USD.

NZD/USD – The Kiwi is actually quite bullish now and I think we can buy pullbacks.

USD/CAD  – I’m looking for a breakout of 1.2900 this week. Can it hold though?

USD/CHF – The Swissy is still neutral.

GBP/USD – I think we are looking at a break lower, however, there are political issues that will be the overriding force.

US Dollar Index (DXY) – I’m looking for a move above 94.15. Tax cuts will see a big jump.