Friday 04/18/08
- Asia – Look at the inverted head n shoulders on FXI
- Europe – Great Britain giving out pounds – look for institutional traders to step in
- US - James look into the Financial futures crystal ball and tell me what you see?
- James how do I trade the financials and the JPY?
- $ up and commodities down.why??? – Interest rates may not fall as much as the market had been pricing in?
- $CRX.X what does that tell us, POT,MON, EOG, PCU, IWM -UYM
- Look at commodities/ w JPY
- FX Pup Lesson on Stochastics
- Have a great weekend
The US dollar has been weakening against the UK pound for several years, reaching a record high for the pair. In fact if we go back to 1984, when the pair were virtually at parity ( one pound was worth just over one dollar), the US dollar has been in a steady decline since, and as recently as December 2007 reached the all time high of almost 2.12, a level not seen before. As a currency trader, the question I am always asked is where do I believe the currency is heading in the future - a critical question if you are thinking of buying and holding US dollar assets long term, or paying for these assets in US dollars. Naturally there are many factors which affect the long term relationship but my current reading of the charts would suggest that if the pound breaks below 1.93 then it is likely to weaken further to 1.75 in the medium term.