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0FXTrader0
I would like to start a thread highlighting the topics moving the forex market.
The more traders who add there replys the better a understanding of the forex market can be acheived.
I use technical anaylsis to help entering trades.
I find the fundamentals and news that moves the markets more interesting.
The market has the Bernake hike to come tommorow. This will bring the Fed Funds rate to 4.75% above that of the 10 Year note currently 4.69%. With the Fed funds rate moving above that of market expectations and the curve inverting US interest rates have moved towards restrictive territory.
It must be remembered the Fed historically has ended with a 50bsp rise. Historically this is the first time rates have been raised consecutively 25bsp a clip, meaning the Fed may have got to restrictive a lot quicker than previous rate hiking campaigns.
The higher the oil price moves petrodollar reflows into the Euro from oil exporting nations who have a tendency to dislike the US will continue on dips. These bids have kept the Euro from the 1.10 - parity depths.
Each time price has moved below 1.20 official demand and petrodollar bids have created huge supply. The fact the Iranians want to create a Euro oil trading bourse and that Saddam Hussein began only excepting Euros for Iraqi oil highlights the need for Euro denominated products in the future.
The continued sectarian violence in Iraq continues in the mainstream news. 50 people tortured in Baghdad yesterday in Sunni-Shiite violence will not help the dollar sentiment. The fact that a war is being conducted is a clear reason for the gold and oil price zipping higher and there correlation to a Euro that can attract safe haven bids along with the CHF.
The more traders who add there replys the better a understanding of the forex market can be acheived.
I use technical anaylsis to help entering trades.
I find the fundamentals and news that moves the markets more interesting.
The market has the Bernake hike to come tommorow. This will bring the Fed Funds rate to 4.75% above that of the 10 Year note currently 4.69%. With the Fed funds rate moving above that of market expectations and the curve inverting US interest rates have moved towards restrictive territory.
It must be remembered the Fed historically has ended with a 50bsp rise. Historically this is the first time rates have been raised consecutively 25bsp a clip, meaning the Fed may have got to restrictive a lot quicker than previous rate hiking campaigns.
The higher the oil price moves petrodollar reflows into the Euro from oil exporting nations who have a tendency to dislike the US will continue on dips. These bids have kept the Euro from the 1.10 - parity depths.
Each time price has moved below 1.20 official demand and petrodollar bids have created huge supply. The fact the Iranians want to create a Euro oil trading bourse and that Saddam Hussein began only excepting Euros for Iraqi oil highlights the need for Euro denominated products in the future.
The continued sectarian violence in Iraq continues in the mainstream news. 50 people tortured in Baghdad yesterday in Sunni-Shiite violence will not help the dollar sentiment. The fact that a war is being conducted is a clear reason for the gold and oil price zipping higher and there correlation to a Euro that can attract safe haven bids along with the CHF.
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