Press reports about Fed gave new batteries to the USD

Surprise, surprise. Just when I thought the market was going for a slumber today, it geared up for unexpected action instead. Today the US dollar rallied broadly and sharply against the other currencies. EUR/USD and GBP/USD suffered the biggest decline since more than a...

USD on the defensive as FOMC rate meeting approaches

t's been a Cablelicious week for GBP/USD, having rallied around 340 pips, compared to the measly 150-pip rally by EUR/USD over the past week. That has coincided with a 68% increase of GBP longs and a slight decrease of Euro longs in the futures market as of last Tuesday. Yen...

Should you buy a mechanical trading system?

With an increasing number of ads out there in the papers and on the Internet, I've received emails from readers asking for my opinion on mechnical/automated trading. Should we all rush out to grab one of those mechnical/automated trading systems that are for sale? The lure of...

To raise or not to raise, that is the question

Are traders back to hoping for US rate hikes by the Fed again, barely after they have been speculating about possible rate cuts? Not too long ago (weeks ago), no rate cut = good for USD. Seems like US bulls are getting more greedy this time round. They want rate hikes,...

Biggest rally of EUR/USD in 2.5 weeks

US jobless claims were better than expected but leading indicators came out worse than expected. USD/CHF broke below 1.2600, the first time in more than a week ago on the back of waning USD bullishness. On the other hand, EUR/USD finally broke free of the chains that bind it...

Choosing a Forex Broker

I was initially reluctant to post information about brokers. However, since I've received such an overwhelming amount of emails from readers requesting for more information on broker selection, I've decided to put together a small comparison of the two types of brokers out...

Temporary truce between US bulls and bears?

No surprises from BOJ's Governor Fukui's words today when he said that the BOJ "will support sustainable growth under price stability by conducting appropriate monetary policy while carefully checking economic and price conditions." He said the economy is expanding gradually...

Another dubious ad - this time in Hong Kong

t seems that the guy whom I have mentioned in an earlier blog posting about him placing an ad, soliciting funds from the public, has also put out the same ad in an English newspaper in Hong Kong, according to one of my Hong Kong readers. Well, I'm not sure about the...

US core inflation the highest in over 10 years

I think the USD bullish sentiment has returned with a vengeance. Even though US consumer prices fell last month (decreased 0.5% in September, the biggest drop since November 2005) on the back of a steep slide in energy prices, the underlying inflation rate accelerated to its...

I can't help but be skeptical

Today I saw an ad in The Straits Times (Singapore) about this person Leonard Berney soliciting for other people's money, claiming to trade on their behalf so that they can supposedly attain 38% return per annum. I strongly urge people out there who have seen the...

Will Yen carry trades be dampened by the Nikkei Shimbun article?

USD/CHF bounced back from its overnight low of 1.2638 to around 1.2690 on record TICS number, but was unable to break past 1.2700. Today the US Consumer Price Index (which measures inflation) will be out, and as long as USD/CHF stays below 1.2710, which was low of yesterday,...

NZD/USD finally breaks out of triangle

The US producer price index (PPI) for finished goods fell by 1.3% in September, the largest since prices fell 1.4% in April 2003, and versus an expected 0.7% decline. TICS came in at a record US$116.8 billion, almost doubling the consensus estimate, but that did not grab...

Important news to move the market today

San Francisco Fed President Yellen made dovish comments that the economic data point to a noticeable slowdown in the economy. She thinks that inflation may decline faster than expected and says that keeping monetary policy steady for a while is a sensible approach (that means...

Important news to move the market today

San Francisco Fed President Yellen made dovish comments that the economic data point to a noticeable slowdown in the economy. She thinks that inflation may decline faster than expected and says that keeping monetary policy steady for a while is a sensible approach (that means...

Cable rallies on good news; Fed speeches due later

True enough, Cable (GBP/USD) made a strong comeback on positive housing data, and on M&A (merger & acquisitions) news that a Qatar-led group could be in the lead to buy Thames Water after putting in a bid worth about GBP 8 billion. The deadline for bids imposed by...