Dollar Dominant Ahead of NFP
| Trade Balance (JAN) | Mar 06 13:30 |
The ECB underscored the massive divergence in developed world monetary policy and a strong US jobs report would add to the argument. On Thursday, the dollar was the top performer while the kiwi lagged. The teetering Australian dollar will be the focus of Asia-Pacific trading. A new set of Premium trades will be issued tomorrow before the release of the US jobs report.
The euro fell as low as 1.0988 after Draghi but managed to close above 1.1000. Still, it was another tough day for the euro as even with better growth forecasts the ECB said it could buy bonds beyond 2016 and with yields lower than 0%.
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Hedging Cable Longs
We issue a new trade to hedge our existiong longs in cable. AUDNZD nearing final target, while USDCAD tradde awaits BoC decision Full detail found here Full detail found here
The current 22% decline in EURUSD over the last ten months is comparable in magnitude to that of 2011-2012, 2009-2010 and 2008-2009. The recovery of inflation from its -0.6% lows in July 2009 to 1.9% in Nov 2010 took a little over 12 months, but the trough in core inflation at the time was at +1.3%, compared to the current +0.6%. Full charts & analysis.
Read More...The surprise on Wednesday wasn't so much that the Bank of Canada held rates but the hint that no more rate cuts are coming. The Canadian dollar was the top performer while the euro was caught in wave of US dollar buying. Australian retail sales and trade balance are next. 1 of our GBPUSD trades was stopped out, today's issued GBPCAD short 15 minutes ahead of the BoC decision hit its final target for 170 pips, while the remaining AUDNZD short further nears its final target.
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