Forex Investment and Currency Trading

Your investments reflect your decisions about how others can use your money. Be sure you can accept those uses. With that in mind here are the main types of investments.
Cash and Cash Equivalents
Since one strategy is to protect what you’ve already saved, there are investments designed with safety as the top priority. By investing in securities from an asset class called cash equivalents, you try to protect your money and earn a little income at the same time.
What Are Cash Equivalents?
They are securities that let you keep your money close and safe by lending it for very short periods (a [...]

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U.S. T-Bond in EUR terms

Since July last year this has been one of the best games in town.
Owning the long end of the U.S. Bond market while also owning USD (Against EUR in this instance) provided about a 47% return into December 2008
Now this chart looks set to break down as it moves below the 55 day moving average and tests trend line support
The 200 day moving average stands over 13% lower

Here is the same chart leading in to the peak in January 1994

Here are the 2 moves compared

Here is the USD-index leading in to the peak in Feb 1994

Here [...]

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Stock markets started the week in the black. In Europe, the largest gains were in Financials, after a gross underperformance. Bonds are hovering around key technical support levels, ahead of heavy issuance in both Europe and the US.
Overnight brought the minutes of the BoJ’s December policy meeting. The highlights are that there is little chance of any further cuts in the policy interest rate, but a strong likelihood the BOJ may introduce further measures to facilitate corporate financing. Outright purchases of corporate bonds may be on the cards. The next BoJ meeting is on 18-19 February.
Recent developments in bond markets [...]

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The normal market pattern is bullish steepening as the Fed eases, and bearish flattening as the Fed tightens. However, one thinks that 2yrs are near the level where the pattern gets inverted—as 2s approach the 0% floor on yields, they cannot keep pace in a market rally. So the curve tends to flatten in a rally, and steepen in a selloff. This change was clear when the Bank of Japan took rates down to 0%. Initially, the easing caused steepening, and then once 2yr swaps moved inside of 1%, easing caused flattening. The US curve may exhibit this behavior in [...]

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