ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The U.S. Federal Reserve failed to hike rates in its June policy meeting just as expected. More importantly, the Fed left alone its projection of the appropriate policy path for 2016 at 0.9%. The Fed trimmed its expectation for 2017 from 1.9% to 1.6% and slashed 2018 from 3.0% to 2.4%. The “long run” dropped … 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
(This is an excerpt from an article I originally published on Seeking Alpha on April 25, 2016. Click here to read the entire piece.) Currency speculators are at “maximum bullishness”: bullish bets on the Japanese yen (FXY) have reached levels unseen since at least 2009. Source: Oanda’s CFTC’s Commitments of Traders Facing off against this … Read more
Traders remain very confident in the strength of the Japanese yen (FXY). Net longs stayed at “maximum bullishness” even ahead of last week’s monetary policy meeting by the Bank of Japan (BoJ). Source: Oanda’s CFTC’s Commitments of Traders That boldness paid off as the BoJ failed to deliver more easing, and the yen soared. USD/JPY … Read more
In the previous week, forex traders extended existing positioning trends. This consistency reveals an on-going confidence in the given trends. Where these changes are consistent with currency moves, traders seem indeed justified in the confidence. However, there are some cases where these positions are starting to run counter to potential shifts in currencies. I expect … Read more