Posts Tagged ‘ trade ’
Carry trade is a popular trading strategy that is based on buying a high-yielding asset with the low-yielding asset, so that the cost of loan is less than the yield of the asset you’ve bought. In Forex, carry trade is based on buying a currency pair with a high positive interest rate difference (swap) or selling a currency pair with a high negative interest rate difference. The good current examples of the long carry [ READ MORE ]
Risk FX drifted lower in Asian and early European trade as worries over Southern European sovereign debt continued to dog the EUR/USD while cable suffered from a slew of negative data that pushed the unit back below the 1.5000 level. The Aussie was the only risk currency to hold its ground as data [ READ MORE ]
A bit of profit taking in risk FX in both Asian and early European trade today after a sharp short covering rally pushed all the high beta currencies higher against the greenback yesterday. The sell off was most predominant in Asian trade as Shanghai stocks slipped more than -2% on fears of further tightening of [ READ MORE ]
A typically quiet pre NFP night of trade with very little event risk on the calendar out of Europe. The UK PPI data was largely in line with expectations while in the Eurozone the focus remained on Greece as the Greek Prime Minister George Papandreou was scheduled to meet with German Chancellor Angela Merkel. [ READ MORE ]
It’s still anyone’s guess as to if and when China will allow the Yuan (RMB) to continue appreciating. You can see from the chart below – which shows the trading history for the RMB/USD December 2010 futures contract – that expectations of revaluation have eroded steadily since December 2009. At that time, it was projected [ READ MORE ]
Although risk on appears to be the theme in financial markets today with equities up strongly, the price action in the majors indicates that the divergence trade is in full swing. The dollar traded higher against the euro, British pound and Swiss franc, lower against the commodity currencies and unchanged against the Japanese Yen. [ READ MORE ]
A probative night of trade in the currency market during the first session of the week as risk FX tested key levels in late Asia on the weaker than expected Chinese PMI data only to recover some ground after EZ results beat forecasts. Chinese PMI Manufacturing which printed at 52.2 versus 55.4 the moth prior [ READ MORE ]
Weaker than expected Chinese PMI Data reversed a small short covering rally in risk FX as European markets opened for trade at the start of the week. Chinese CFLP Manufacturing PMI slowed to 52.0 from 55.8 the month prior which the HSBC gauge dipped to 55.8 from 57.4 in January. Both measures remained firmly in [ READ MORE ]
A short term bearish Gartley is forming on the GBP/USD. Note that this does not affect the long term GBP/USD long trade we are currently in. [ READ MORE ]
Accepting the risk before placing a trade is one of the most important components of a winning trader’s psychological makeup. This is also a relevant follow up to yesterday’s article and some of the comments about leverage. [ READ MORE ]
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