FED has spoken. Target interest rate slashed to 0-0.25%, basically nothing. Looks like our central bank is the winner in the unofficial race between CB’s to zero. That is not all. At the same time it was announced that FED will be an active buyer of long term Treasury securities, hoping to lower interest rates on these debentures and thus help to revive economy. Program of buying mortgage backed securities was also mentioned ($600 B) as well as plan to facilitate other consumer loans like car, student, credit cards and so on($200 B). There was more, the statement was the longest I have ever heard. I’ll leave it to economist and journalist to digest the details. To me it looks like FED is throwing everything but kitchen sink into the crisis. I guess they are saving the sink for the next employment report. If following NFP is as bad as the recent ones, sink will go as well.
Stock market liked it, but Forex was different. Dollar got severely punished. USD sank like a rock within minutes after the announcement. This indicates that FED will have problems financing this low rates war. With Treasury paper paying next to nothing, will the usual lenders (China & Co) play ball? I guess we have to wait and see.
I have written about so many orders and potential trades on these pages over last few days, that it is going to take me couple of posts just to cover them all. By the way, every order mentioned here this week was triggered.
My pursuit in shorting EUR-GBP is not producing desired results. Euro just exploded to the upside following the FED news release, but I was stopped out just before that.
Loss of 38 pips, as soon as the previous high was taken out. I have to wait longer for correction….
Now the good news, really good. CHF-JPY trade has already reached its target for a nice gain.
Entry was at 78.10, objective 79.80. It was reached much faster than expected, +170 pips. and i thought CHF-JPY was boring… That same post, from Sunday, I think, also featured NZD-CAD as a buy.
Once again, this came sooner than I thought it would, but after a nice breakout, target was reached, if just. This trade netted 210 pips. I just closed NZD-JPY trade which didn’t happen last week, at 51.94, a little short of intended level, but still 62 pips ahead. My remaining trades NZD trades are also closed already, but I’ll go over those tomorrow. Frankly, even with the low margin I use, having 4 different trades involving NZD made me a little uncomfortable. Kiwi came through, however, so no complaining.
Mike K.
Looks like there is some science to your madness. This is good trading, man.
Thank you.
I don’t know how you even found this NZD-CAD trade. I mean, most people only look at dollar. After watching you work here for some time, no surprise so many people talk about forex trading. You make it look easy.
Frankly, Renata, it is not easy. While I try to keep it as simple as possible, avoiding complicated strategies, discretionary trading takes rather long time to develop. Don’t forget I take fair share of losses as well.
Kitchen sink, ha, ha. That’s hillarious, mate. I wager they are ready to pawn off everything else. At any rate, watching crosses does pay. Keep them coming.
This CHF-JPY was right on the money. This cross is normally the slowest moving of all the major Yen pairs. Swissy went on a nice run, just like Euro. I took this trade with you and this time held out till the target was reached. Great.
Michelle, if you copy any of my trades, please remeber to still do own analysis and only trade IF your opinion is in agreement with mine. You don’t want to trade blindly, not a winning long term strategy.