Monday, January 29, 2007

Quiet morning shaping up....

The week seems to be starting out on a quiet tone, with the dollar slightly stronger from Friday's close. Dollar Yen is the biggest mover up at 4 years highs. I will remain on the sidelines with only small trades as I still have not seen a compelling reason to enter the waters.

An article in todays USA Today, talks about Interest rate cuts in the States. The article says that the Federal Reserve will cut interest rates at the end of 2007 not earlier as previously expected. This actually makes sense to me. The economic numbers have definitly been better then (I) expected. In the currenct environment I can see the Fed holding off rather then doing anything. Also if you take a look at the predictions on the street curently, Merrill Lynch and U.S. Trust expecting rate cuts and The Conference Board and Bear Stearns looking for increases, a wait and see approach does not seem out of the question. This I think can lead to range bound (wider ranges as the year goes on) markets both in Interest rates and currencies.

These are the FX Trading Ideas for today (not many huh?)

Good Luck and Good Forex Trading




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