Monday, April 24, 2006
The Global Imbalances
USD is very bearish at the moment and being battered across the board. It is at it's 7-month low. EURUSD is reading a high 1.24 while USDJPY is at a low 114.
A major reason for the dip contributed by the G7 strong comments on currency flexibility and global imbalances. Central banks of many countries are diversifying their forex reserves, selling off USD and putting them in EUR and other currencies.
It would be an interesting time to trade, but as I am travelling and don't have my trading station with me to do the technical analysis (I wish I had brought my notebook with me).
Nonetheless, I'll make a point to watch Ben Bernake, the new Fed Chairman, testify in Washington this Thursday on the state of the US economy. His remarks would fuel further price movement in either directions.
A major reason for the dip contributed by the G7 strong comments on currency flexibility and global imbalances. Central banks of many countries are diversifying their forex reserves, selling off USD and putting them in EUR and other currencies.
It would be an interesting time to trade, but as I am travelling and don't have my trading station with me to do the technical analysis (I wish I had brought my notebook with me).
Nonetheless, I'll make a point to watch Ben Bernake, the new Fed Chairman, testify in Washington this Thursday on the state of the US economy. His remarks would fuel further price movement in either directions.
# posted by Camus @ 9:03 PM 