Lot of great action today!
The European currencies reaction to the quarter-point cut in the US Fed funds rate on Wednesday was shortlived! Today the Eur/Usd and Usd/Chf returned to their trending action of yielding to the dollar.
Further comments after the rate cut appeared to indicate that the Fed is likely to maintain rates at the new level for the near term.
The dollar jumped to its highest level in a month against the euro today, based on growing suspicions that stable US interest rates will encourage a bottom in the dollar. In contrast, the ECB is increasingly expected to cut its refinancing rate soon or risk further economic slowdowns.
Currencies move from extreme to extreme. It is in their nature.
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There is a very good chance that we will have OneNightStand trades on Friday.
The best possibilities are the buys of Usd/Chf and Usd/Jpy.
Remember: The stoplosses have been changed to 100 pips, up from 55 pips!
Current equity: $710.05.
The weekly recap will follow on Friday.
Have a great day!
Joel Rensink
www.infiniteyield.com
Thursday, May 1, 2008
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