ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Bank of Japan (and/or the Japanese Ministry of Finance) has an excellent sense of timing technicals. Last night’s intervention to put an end to the on-going strength in the Japanese yen came just as the U.S. dollar looked ready to follow-through on its break of the important support at the 200-day moving average (DMA). … Read more
Earlier today, the Bank of England (BoE) maintained interest rates at 0.50% and did not change the size of its quantitative program… and the market essentially yawned. Such sluggish behavior has characterized the British pound’s behavior against the U.S. dollar for almost three weeks now. Source: dailyfx.com charts (Click for larger view) The over-extension of … Read more
So much for the dollar being “…poised for additional gains, especially versus the euro.” Instead of slowly grinding higher over its 50-day moving average (DMA), the U.S. dollar index failed its test of this important resistance line. Now another test of the 200DMA is right around the corner. *Chart created using TeleChart: Most of the … Read more
The Swiss franc is back to all-time highs against the euro, and the extrapolations have begun. This morning, Bloomberg reports that UBS expects the franc to remain strong for the entire decade: “The Swiss franc will stay strong and investors should hold it as a proxy for the old German deutsche mark as the currency … Read more
The U.S. dollar index has made little progress since its tremendous one-day rally over two weeks ago. Over the past week, the dollar index has stalled out right at its 50-day moving average (DMA). [Click for larger view] *Chart created using TeleChart: I set my plan at this point to dial my positions to net … Read more