Yesterday good news from Germany was greeted by a big drop in the EUR, the opposite to what should have happened. The cause. Syria.
At present fundamentals are not having the expected effect on the currencies so great care can be taken as we focus on an attack on Syria. With Mark Carney speaking in London today, GBP is a dangerous trade, I will be staying out of trades until that is over and to be honest, I’m tempted to stay out of trades until a decision on a move to war is finally made. Don’t forget also that if we decide not to attack we may have a relief “rally” rather like that when the EUR managed to bail out a country that was on it’s last legs.
At present EUR is now floating nicely down but I’m looking to trade crosses particular interest in the swissy (USDCHF) later.
Amazing story in Bloomberg http://www.bloomberg.com/news/2013-08-27/currency-spikes-at-4-p-m-in-london-provide-rigging-clues.html actually confirms what we already know from Pro-Act Traders training about how the big boys will MOVE currencies to fit in with their wants and requirements at particular times. This is, in fact, old news as far as I’m concerned, the same sort of thing happens every day at least twice, but perhaps not to the same levels as described here.