Forex Investment and Currency Trading

The markets, especially equity markets, continue to be extremely volatile.  Liquidity is improving in FX but it is still not as good as “normal” conditions as many participants continue to sit on the sidelines while the FX market consolidates and people wait to see how the FED’s liquidity maneuvers play out.  In the end,  we will most likely see consolidation to slight US dollar appreciation for the next 3-6 months.  That being said, nothing really makes sense to me these days and so anything can happen:
 
Some major overnight news:

1. Visa - successful IPO yesterday at $44/share, $2 higher than the expected range of $38-$42.  In pre-market trading, Visa is trading at $61!!! I do not know how that makes any sense.  Are these investors forgetting the fact that credit card delinquencies are on a march higher and the consumer is already strapped with too much debt on their mortgage?  It makes no sense to me.

2. Gold - down almost $50/oz…did investors forget the fact that y/y inflation is still printing over 4% and the 2yr UST is trading at 1.60%…I’m not a math expert by any means but that looks like negative real rates of return and how can the proxy hedge for inflation be dropping?

3. HBOS - had to make a statement to the market that its liquidity is fine after its stock dropped 17% in London on funding concerns…stock rebounded to down 8%.

4. Lehman - taps new FED window, Goldman acknowledges it will most likely also do the same this week