Four Horsemen of Dollar Index

Central banks around the world are highly active. Some, like in Switzerland and Denmark, are working overtime to prevent their respective currencies appreciate too much. Some, like in emerging markets – India, Russia, Ukraine etc. – are fighting to prevent their currencies not depreciate a lot. Then there are others, like in Japan, U.S.A. and EU, who are…

The Swiss Franking

The Swiss National Bank (SNB) shocked the world with its decision to remove the Euro floor. The franc declined over 15% versus the Euro. Since August 2011, the SNB had been defending the EUR/CHF exchange rate at 1.20 level. It decided to do that after the EU fell in grips of various crises and the franc appreciated 40%…

Trade Alert: July 24th – Stop Pounding

On June 11th, we got traded British Pound on the long side against US Dollar in our long British Pound in June strategy, when the currency pair was at 1.67900. On June 27th we added to that position at 1.7073. The exit window for this strategy opened up in mid-July and we exited one lot on July 16th at…

Trade Alert: Close One Pound Trade

Our long British Pound in June strategy has been quite successful since 2000. We enterer long trades on June 11/12 @ 1.67900 and on June 27th at 1.70350 for an average price of 1.68513. One of our exit signal triggered on July 16th. We will exit one of our position. For reporting purposes we will use…

Trade Alert: Buy a Pound

Early in June we had entered long trades in our long British Pound in June strategy. Now comes another opportunity to enter this trade. We usually follow four entry strategies.On close of June 11th, we had issued three trade alerts. The fourth one will trigger at the close of June 27th. We will hold this trade till mid-July. We will send…

Forex Watch – Did Godot Come?

Wednesday June 18th FOMC statement and the press conference did not muddy the water much but it also did not allay all fears and concerns. The Fed has stuck to its plan tapering to wind down its bond-buying program by the year-end and then start raising interest rates some times early next year. That was good…