Forex Investment and Currency Trading

Trading Strategy – These last few weeks have been full of unprecedented economic activity.  In FX this translates to the “risky asset” trade protection unwind.  So AUD/JPY, NZD/CHF –those were the big movers overnight.  No coincidence that this is also a “carry-trade” set which also correlated strongly to FX Option implied volatility.  JPY and AUD [...]

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After yesterday’s coordinated rate cuts from most of the world’s major central banks, markets are already asking what’s next. Interbank lending is still getting worse instead of better, as the 3-month USD LIBOR rate jumped by another 23bps overnight to 4.25%, driving the LIBOR-OIS rate to a record 3.50%. Yesterday the equity markets couldn’t decide [...]

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Markets were screaming for coordinated easing over the last 2 weeks.  And that is what we got this morning… At 7am this morning, Central banks from the US, UK, Euro zone, Canada, Switzerland, Sweden, and China all announced interest rate cuts. Japan did not participate but has made a statement, showing their co-operative spirit.  For [...]

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