ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Global bond yields are falling like rocks, many investors are paying governments to hold their money, and odds are increasing for more monetary accommodation from the major economies in the likes of the United Kingdom, the eurozone, and Japan. In the U.S., expectations for a rate cut have essentially been moved off the table. So, … Read more
As the smoke started to clear from Friday’s post-Brexit carnage, one currency rose particularly well from the ashes: the Australian dollar (FXA). For example, against the U.S. dollar, the Aussie bounced perfectly off support at its 200-day moving average (DMA) and even maintained its earlier 50DMA breakout. Source: FreeStockCharts.com AUD/USD traded around 0.76 around the … Read more
Over the past two weeks or so, I have focused my currency trading on fading the British pound (FXB) and the Australian dollar (FXA). In “The Currency Market Is Lagging A Dramatic Shift in Brexit Sentiment,” I compared market sentiment versus the trading action and made the following claim (emphasis newly made): “If my interpretation … Read more
On June 6, 2016 (U.S. time), the Reserve Bank of Australia released its latest statement on monetary policy. The pronouncement was as pedestrian as ever, including leaving rates untouched. The most notable difference from the current and the previous statement appears to be the RBA’s reflections on inflation. In the current statement, the RBA made … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 31, 2016. Click here to read the entire piece.) At the beginning of this month, I claimed an unwind of confidently long positions was imminent for the Australian dollar. {snip} Source: Oanda’s CFTC’s Commitments of Traders {snip} Source: FreeStockCharts.com At … Read more