the action in forex is happening again. the preference is not the u.s dollar today but other risky currencies. euro pound aus nzd gained. usd gains against yen.
canada has better than expected trade balance.
u.s as well has better than expected trade balance.
however, based on the sentiment,(the old sentiment where the buck got charm), dollar suppose to be choice.but, interestingly to know traders choosed canadian dollar. the pair slides 174 points within approximately 3 1/2 hours.
i am somehow agree with the idea that most big traders and giants only be in the market during peak hours, and after market moved, they get out totally. in other words, they are the 'market movers'. they wait for chances, and when there is, they'll take that opportunity and ride hundreds points before get out.
they are like genius.
we traders then, need to get in their boat so we don't lose all the time.
THE DOLLAR GETS WEAKER?
the sentiment is treasuries, whereby U.S were expected not increase their buying on assets ( bonds) but to increase their interest rate.
since the forecast of economist said Fed will probably keep interest rates at low for sometime now, and the possibility of buying more bonds for bail out.
investors were said to turn bearish on the treasuries as well as the dollars.saying that dollar and treasuries as ;;;safe haven;;; assets is losing their appeal as the recession is easing for the U.S at least and the world.>>> this is considered we are getting back to prefer more foreign higher yielding currencies like pound , australia, new zealand and the euro.
but again, why must these to happen, since yesterday, the equity market drop and even s&p 500 drop below the important benchmark of 1000 level. first what happened since August7 2009, after the U.S NFP whereby the data came out better than expected, trader already changed to bullish on dollar as (EXPECTING THE FED WILL INCREASE INTEREST RATE, YES??? BUT THEY WERE FORECAST IN THE NEXT DAY by the economist to not increase the rate to be based on the fundamental where the unemployment is still at low level for the World Reserve currency country.
Where do we keep our money today?
to save them from drowning into the market crash. or is there really going to be the second wave of market crash? as i wrote this, the speculator already got out of the market and closed their position. damn profit they took. gud trade was taken there.
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that people tend to seek much more higher yield of investment now (means going risky) rather than stick to safe haven assets like bond and treasuries.and U.S dollar.
as reference on the U.S resident confident.pls have sometime to check this BPGCUSMF:IND Bloomberg PGC US 6Mo Crncy
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