THIS POST WILL HELP YOU UNDERSTAND THE COMPETING VIEW POINTS ON THE FUTURE PERFORMANCE OF THE U.S. DOLLAR RELATIVE TO OTHER CURRENCIES!
JEFF SNIDER'S POSITION ON THE DOLLAR:
THE U.S. DOLLAR IS STRONG BECAUSE OF A SHORTAGE OF DOLLARS WORLDWIDE TO CONDUCT GLOBAL TRADE IN, DUE TO THE FED'S INABILITY TO TRULY SATISFY DEMAND FOR U$Ds, AND WILL CONTINUE TO STRENGTHEN...
THIS POST WILL HELP YOU UNDERSTAND THE COMPETING VIEW POINTS ON THE FUTURE PERFORMANCE OF THE U.S. DOLLAR RELATIVE TO OTHER CURRENCIES!
JEFF SNIDER'S POSITION ON THE DOLLAR:
THE U.S. DOLLAR IS STRONG BECAUSE OF A SHORTAGE OF DOLLARS WORLDWIDE TO CONDUCT GLOBAL TRADE IN, DUE TO TO FED'S INABILITY TO TRULY SATISFY DEMAND FOR U$Ds, AND WILL CONTINUE TO STRENGTHEN AS...
THE EURODOLLAR FUTURES CONTRACT REFLECTS THE L.I.B.O.R. INTEREST RATE (A BENCHMARK FOR THE INTEREST RATE AT WHICH MAJOR BANKS LEND TO EACH OTHER)!
WHEN THE PRICE OF THE CONTRACT INCREASES, THE L.I.B.O.R. INTEREST RATE IS DECREASING, WHEN THE PRICE FALLS, IT IS INCREASING!
THE PERIOD I HAVE HIGHLIGHTED IN THIS POST IS THE PERIOD OF DOLLAR ILLIQUIDITY THAT OCCURRED...
This is an educational post - compliant with the house rules on text-based contributions - showing some of the tension between monetary policy taken by the FED and real world fiscal issues at deeper levels. Click and drag chart if all text does not show. Thanks.
The tension has caused whipsaws in the US Dollar, and price of Gold. The IMF has declared a global...
The following is just my point of view and not the single source of truth. Hence, I would appreciate any comment which would lead to a fruitful discussion.
When you are trading equity indices, you are simply trading a bundle of cashflows (compromised by the companies within the index). If you are not a scalper (I am not) but rather a swing trader (what I try to...
From a 1989 article in the The Wall Street Journal, by Victor Niederhoffer, speculator:
Speculators don't only create bubbles (not sure short term speculators make bubbles happen, they might actually smooth them).
The Federal Reserve was created by a US president to separate the money supply from the government.
But they ended up being control freaks very...
Using an updated chart of earlier posted opportunity around AUDUSD (AU) I like to highlight and illustrate the exceptional speculation that has been going on since mid April onwards. The first and many incidence of the same speculation has often seen coming in very sudden which indicates a single source instead of graduate forming of buying/selling pressure you...
Hello guys.
Personally I am excited as we get closer to FOMC, and I will be trading FOMC event.
I will have positions on:
DXY
USD/JPY
GOLD
SILVER
EUR/USD
I will manage to trade this event with High Frequency news trading machine, as HFT is back in da building, and we had a great success trading news with this machine. Last NFP was sweet as well.
Since I have a...
I personally follow 4 central banks in detail: FED (USD), ECB (EUR), BoJ (JPY) and BoE (GBP). Knowing the monetary policies of these banks and how they differ, helps me in trading the following 6 major pairs: EU, GU, UJ, EJ, EG and GJ. I also follow three other central banks, be it more at a distance and with less detail: SNB, RBA and BoC. The banks to follow...
Apologies for the ominous chart title on a Monday morning, but having spent the weekend watching a few documentaries about the Japan earthquake, I was intrigued on how the currency markets react to black swan events.
The Story (Japan Earthquake - Yen)
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The Tohoku earthquake hits Japan on...
