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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2338
Posted: Feb 22, 2010 5:00
Comments: 2338
Forum Topic:
USD
Discuss USD
The CBs hedge their portfolio of devise reserves to avoid losses of their respective currency.
The FED has been successfull so far to dictate the CB's hedging.
When I say so far I mean just that, so far.
I think some do not understand that fx is entirely different from stocks. Stocks have an absolute value currency pairs have a relative value.
Snce I work with a money flow visualizer which uses all traded fx pairs as an input I could clearly see that EUR was just not strong - absolutely - when everyone touted strong Euro.
Or more precisely the value at risk ( a real number between 0 and 1 ) was almost always as high as of USD. Right now EUR has a higher value at risk than USD it is weaker than JPY and GBP, too.
And when you get EURUSD rallying 90 or 100 pips, you get the other camp cheering (basing their their argument on US no longer being center of the world, etcc)
And when you get China raising rates, you get ...
You see my point
Tthis is a market based on capital flows, fund managers's operations and a whole lot more of other factors. And yes, the technicals do have a major game. And I try (hard) to integrate all of these dynamics in reading the market over various time frames. Often times, these dynamics supercede the aforementioned maco dynamics.
Ashraf
Trying to sound really smart... but only seem to be an empty can creating a lot of noise...
like i said.. not worth debating something outside his box... coz he thinks the box he lives in is everything... good luck catnip... keep playing your assumption game... :)
When EURUSD was at 1.31. i called it day by day to 1.38. Walked you guys thru the Jackson Hole talk, and the last 2 FOMC meetings, while most euro bashers were making grand remarks about Euro integration and Chinese trade.
Catnip, how can you conclude what i underestimate and overestimate large economies via my FX calls? Don't you know that the medium term FX dynamics are not always necessarily related to the long term fundamentals of these economies? In case you did not notice, my attempt is to call the market and not necessarily the maco dynamics--Thats why economists at the IMF, WB etcc wont be able to read the market.
Sarmad, take the time to read what i write over the last 2 months about the euro then go look at the chart. Being liquidated depends on your positioning and margin use.
unbelievable
Ashraf
Ashraf
it depends whether one is position trader or day trader. Most day traders have a poor performance overall but position trading can be very profitable. For example the Euro crisis
was easily predictable as no common eurozone economy exists this is a death knell in a global
recession. And still is as nothing changed. So sometimes one trades the future and sometimes now. Ashraf's error - as will turn out soon- is to assume the FED can still do whatever FEd wants to. I think no this time is over.