#Gold XAUUSD (1230.17) Rebound possible to 1235 over next few hours
Euro counter-trend rally hit and exceeded bullish target. Now pair is encountering significant supply as central bankers battle to depreciate their currencies in a game of the "Biggest Currency Loser". In this case, the currency that loses the most value will stimulate exports and increase growth for that country. It's a race to zero and I believe the Euro will make a run down until the Fed has another reason to down play the dollar. Thanks for reading. Make sure you sign up for my distribution list: http://bit.ly/Jointhefxclub
EURUSD rallied to a high near 1.2674 before pulling back sharply. Look for retest of the 1.2525-1.2500 area
US Dollar uptrend to continues heading toward the 88.70 2010 highs. Look for continued Euro, Aussie, GBPUSD, and NZDUSD weakness. On the other hand look to buy USDCAD and USDJPY on dips
Janet Yellin was confirmed as Fed Chairman to replace the outgoing Ben Bernanke. What does that mean for Forex traders? Well Janet Yellin has been an outspoken "dove", someone in favor of printing more money to add stimulus to the economy. On the other hand, a "hawk" wants to normalize interest rates and remove the stimulus. Fed Hawks, like Dallas Fed president Fisher, say that the current monetary policy is damaging the economy doing more harm than good. While Fed Doves, like Yellin, say that the benefits of stimulus outweigh the risks. What this means is that the continuation of Bernanke's policies to stimulate the economy through bond buying will weaken the dollar for a long time. So any talk of "tapering" or reducing the amount of stimulus is out of the question.
So what do Forex traders look to do? Sell the dollar on any rally and buy high yielding currencies like the Australian Dollar and New Zealand dollar. In addition the British pound is a good choice against the US dollar as the UK economy is staging a recovery.
Great start for the first test broadcast of from the FXTC trading room! This was good for 31.3 pips on AUDJPY!
Looking forward to more winners like this!
Nice to have co-pilot Jason/EZPippen in the room as well!
Bank of England Rate announcement and ECB rate announcement on Thursday plus NFP on Friday should lead to some fireworks in the Euro, Cable and US dollar.
It does not seem like the fall as the dollar is finding some legs versus the Swiss franc and the Canadian dollar. It's also got the Euro in a headlock.
The NFP number needs to come out strong to maintain this dollar strength +180,000 jobs. With the government shut down and contractors who depended on government money being out of work, a high number is unlikely. I expect dollar weakness on Friday.
Hello Trader's! Welcome to my Blog! I have been trading for 20 years and this is a new chapter in my trading career. I will share my opinions and overviews of the market from time to time so check back often!