It has been only one day since the release of the currency report by the Treasuryand it is already taking heavy flak. And just from bloggers and some media outlets which routinely criticize, well, everything. Even supporters of current administration are up in arms, like labor groups. The AFL-CIO labor federation urged Congress to pass legislation to fight China’s currency practices. The report itself was called bogus and “ignoring evidence, including Treasury’s own findings”. Senate Finance Committee member Orrin Hatch, called the report “weak-kneed” and “It is beyond a reasonable doubt that China is manipulating its currency”. We will see over next few week, maybe couple of months, if the Congress decides to act. This issue is not going away.

On a more immediate note, Canadian Dollar surged today on strong employment numbers, just like the Aussie did recently. Expectation was for 8.1% unemployment and 20,000 new jobs. Reality turned out much better, with unemployment falling to 7.9% and 93,000 of new jobs created. In a fashion which has been repeating itself recently, CAD was rewarded, since these figures could prove to be enough for the Bank of Canada to start raising rates soon.

This trade in CAD-CHF was discussed in the last post. The idea was to go long at 1.0130, with 1.0240 target. Price came very close to entry before the fundamentals were announced and it moved swiftly. My order was slipped, with the fill at 1.0136. Nothing to cry over, especially since objective was reached so fast. This made for a nice finish to my trading week. Have a great weekend!

Mike K.