Tuesday, August 08, 2006


Announcement day. I am looking for the FED to pause and to keep the statement pretty much as it has been. The FED has done nothing over the last few days/weeks to alter the perception on the street that they are about to pause, and I do not think that the FED wants to surprise anyone. As for the statement, I think the FED will stick with it usual, we will go number to numer speech. It makes sense. The believe the market will take this as being on the more dovish side (although I do not).

For trading ideas.....Always remember the Trend is your Friend......So

Stay short dollars. I like being short dollars against Euro and Gbp as they continue to be in a rate rise environment and we are (at least for now) pausing.

I have also been watching Usd/Cny. It has been widely reported that the Bank of China is about to step up its apprciation of its currency. Maybe, but I am not convinced. I think the apprcaition built into the curve is quite aggressive so I like being long dollars. You can also buy Usd/Cny against selling Usd/Krw.

These are the FX Trading Ideas for today.



Post a Comment

Subscribe to Post Comments [Atom]

<< Home