Terror threat disrupted

A terrorist threat originating in London was disrupted today by British police. As London police have reported "A major terrorist plot to allegedly blow up aircraft in midflight has been disrupted". Markets have had a very muted reaction I think for couple of reasons.

1. It was caught before any damage was done.
2. It originated overseas
3. This is another example of the Western world being one step ahead of the Terrorist.

I think this is an important point. Being one step ahead of terrorism has to be looked at positively throughout the world. As I sit here writing this I wonder what Joe Lieberman, Senator from Connecticut, is thinking. Two days earlier and he has a much better chance of winning his primary.

For trading ideas I have not changed my opionion at all. Lower dollar overall. As for rates, the U.S. could be pushed (or at least market perception) further toward a wait and see approach with any marginal numbers being viewed from the dovish perspective.

These are the FX Trading Ideas for today.

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