LONDON, May 12 (IFR)- Cable has slumped by over three-quarters-of-a-cent to a low of 1.4900 on the back of a dovish quarterly BoE Inflation Report. The BoE sees annualized UK CPI under 2.0% in two years if interest rates are held constant ). Annualized CPI is currently running at 3.4%. Bank Rate has been held at 0.5% since it was cut to that level in March 2009. The BoE IR also says that downside risks to economic growth in the near term have increased and that the pace of recovery remains uncertain (BoE website/Reuters).
@Shane: sure, that's all the truth and I've been through all of it in the past years. Then it all settled down and here I am with few lines on a chart, single fundamental view of a trend and sound moneymanagement :) Keep it up.
I honestly don't know rrose. EW never worked for me. In fact almost any technical analysis never worked for me. That's why Im using simple trend lines as a support tool (a kind of reminders) and fundamentals as the basis for my trading. I tend to simplicity because Im very very lazy :) If the latest leg up on the Euro is because of EW counting or because Geithner comments or because of some rumor buying ... i simply don't know. If I look at the EuroZone cacophony I simply can't go long :) Absolutely no offense, we are different people with different views and different reasons for going long or short. If you don't mind, try to put up some chart with your EW view. Im always curious and open for new inspiration.
CDS: Credit Default Swap. You can look at it as a price of insurance of a certain amount of a debt (a government bond for example). The higher the CDS the higher the perception of a potential default (bankruptcy, crash, screwing up) of the entity selling the debt (the government for example).
Now, regarding bonds, the yield of the bond is similar. Investors want higher yield on a more risky debt (which makes sense: if you're going to give someone irresponsible a money for a piece of paper [a bond], then you want back much more in comparsion to giving money to someone responsible, right?) Now, the spread (difference) between the yield of German 10yr bund (relatively stable with low risk) and the Greece Government 10yr bond (relatively unstable and risky right now) tells you, how bad is the situation of Greece :) and how screwed the EURo could be.
@lalobertone: I have no idea :) It could (and probably will be) Greece. Im not sure therefore Im not adding any new entries to my short position and Im waiting to see.
@rrose: Im building new short position on eurusd after I took profits on my previous short on friday. From my point of view it's the best to get out of the long NOW :)
@redart: a blasphemy? :) I just wanted to understand why you do prefer currency futures over forex. There is a considerable drawback in futures for me: I can't get out of a trade when the exchange is closed. But I can if Im trading eurusd forex. So personally I'd use futures for swing trading and forex for daytrading :) But... it's me, not you :)
@Ali40: you can create demo account with OANDA for example (it's called Oanda FX Game). They quote 3 hours pre-open and usually some time after the friday's close.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(11 months ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(11 months ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(11 months ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (11 months ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (11 months ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (11 months ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(11 months ago)
إستعمال تحليل الإنترماركت والتحليل الفني الكلاسيكي لتداول الذهب و الناسداك و السندات. شاهد هنا
Using intermarket technicals analysis to trade XAUUSD Nasdaq100 and Bonds.Watch here.
Latest Hot-Chart - May 16
Dax 200 DMA Deviation
You remember we went short Dax40 in late March based on the 13% 200 DMA extension, which gave us at least a 500-pt gain.
View Hot-Chart..
LONDON, May 12 (IFR)- Cable has slumped by over three-quarters-of-a-cent to a low of 1.4900 on the back of a dovish quarterly BoE Inflation Report. The BoE sees annualized UK CPI under 2.0% in two years if interest rates are held constant ). Annualized CPI is currently running at 3.4%. Bank Rate has been held at 0.5% since it was cut to that level in March 2009. The BoE IR also says that downside risks to economic growth in the near term have increased and that the pace of recovery remains uncertain (BoE website/Reuters).
Keep it up.
If the latest leg up on the Euro is because of EW counting or because Geithner comments or because of some rumor buying ... i simply don't know. If I look at the EuroZone cacophony I simply can't go long :)
Absolutely no offense, we are different people with different views and different reasons for going long or short. If you don't mind, try to put up some chart with your EW view. Im always curious and open for new inspiration.
CDS: Credit Default Swap. You can look at it as a price of insurance of a certain amount of a debt (a government bond for example). The higher the CDS the higher the perception of a potential default (bankruptcy, crash, screwing up) of the entity selling the debt (the government for example).
Now, regarding bonds, the yield of the bond is similar. Investors want higher yield on a more risky debt (which makes sense: if you're going to give someone irresponsible a money for a piece of paper [a bond], then you want back much more in comparsion to giving money to someone responsible, right?)
Now, the spread (difference) between the yield of German 10yr bund (relatively stable with low risk) and the Greece Government 10yr bond (relatively unstable and risky right now) tells you, how bad is the situation of Greece :) and how screwed the EURo could be.
@redart: a blasphemy? :) I just wanted to understand why you do prefer currency futures over forex. There is a considerable drawback in futures for me: I can't get out of a trade when the exchange is closed. But I can if Im trading eurusd forex. So personally I'd use futures for swing trading and forex for daytrading :) But... it's me, not you :)