DailyFX Forex Radio - Carry Trade Wobbles as Risk Remains King - What has to Change?
By DailyFX Radio | August 30, 2007
· Japanese Yen looks to gain on continued equity market volatility
· Speech by Fed Chairman Ben Bernanke to make or break interest rate expectations
· Be sure to view the rest of the week’s event risk on the DailyFX Forex Calendar
To discuss these or any other FX topics with the DailyFX analysts, check out the Forum
Click Link to Listen to our Evening DailyFX Radio PodCast:
http://media.dailyfx.com/podcasts/FXRadioPM083007.mp3
Tags: carry trading, currency trading, dailyfx, dollar, forex, forex blog, interest rates, market volatility
Topics: DailyFX Radio Podcasts | No Comments »
Carry Trades Bounce: How Far Could it Extend?
By DailyFX Updates | August 29, 2007
High yielding currencies ranging from the Yen crosses to the New Zealand and Australian dollars have rebounded after yesterday’s sharp losses. Although the rallies are strong, I think that it is highly unlikely that the rallies will extend beyond the August 24/27 highs (depending upon which pairs you look at). Why? Because volume is thin this week and many banks only have junior traders left on their desks. These traders are not likely to take on any new positions and are there just to monitor levels, book trades and watch for stops. Taking on risk is the last thing that senior dealers want their junior dealers to do at this time. As a result, any rebound in carry trades could be limited.
According to the latest FXCM SSI report, open interest increased over the past 24hours as nearly 70% of all USD/JPY positions is to the long side.
Tags: carry trading, forex news, forex trading
Topics: DailyFX.com Updates | No Comments »
Carry Trades and the Dow
By DailyFX Updates | August 23, 2007
Since everyone is saying that carry trades are moving in lockstep with the Dow, watching the movement of the US equity index could give us good clues as to whether the yen crosses will turn negative as well. Here is the latest Dow chart. Watch the green line (100-day SMA). If we have a close below there, we could see more substantial US equity market weakness, which could translate into carry trade weakness.
Tags: carry trading, currency trading, forex, forextrading
Topics: DailyFX.com Updates | 2 Comments »
FXCM’s adding new pairs!
By Tim Shea | August 23, 2007
We’re now in the process of adding 4 new pairs to trade on certain account types, which will open up exciting new trading opportunities. AUD/CHF is being added to all accounts, while GBP/CAD, GBP/NZD, and USD/DKK are being added to 100k accounts.
I think the most exciting new prospect for me is the GBP/CAD. It has a surprising amount of volatility (rising 3800 pips in 2006, and falling 2500 so far in 2007), and when it moves, it MOVES. For example, from Nov 17 to Dec 1, 2006, it rose 1,200 pips… with NO retrace on the daily. Not a single red candle! That will make it a great new choice for trend and momentum traders.
Next is the AUD/CHF.
GBP/NZD also will hold a lot of interest for those who desire volatility. From July 26 to Aug 16, its moved a whopping 3,850 pips. Right now the Euro is at 1.3400. If it added 3,850 pips, it would be at 1.7250. I don’t see that ever happening in a month. Do you?
Finally, the only new currency being added is the Danish Krone, abbreviated DKK. This will be paired with the USD and offer a new method to trade the Europe/US relationship. The DKK is maintained in a tight trading band with the Euro, so trading USD/DKK is kind of like trading the inverse of EUR/USD. I’ll be interested to see what kind of strategies traders develop for this pair using the correlations between the EUR, DKK, and CHF.
I wish I could give you a date on these new pairs, but I don’t have one yet. In the meantime, you can get excited by taking a look at some charts of them. This chart can load those pairs: http://quote.fxtrek.com/misc/fxcm.asp
Tags: carry trade, carry trading, currency trading, forex trading, fxcm, pips
Topics: What's New at FXCM | 3 Comments »
DailyFX Forex Radio - Carry Trades Slowly Pick Up As Equity Traders Gain Confidence
By DailyFX Radio | August 22, 2007
· US Dollar loses steam as carry trades start to pick up, but ranges likely to prevail until Friday
· While Treasuries have taken a hit as well, markets are still expecting a cut by the Fed - what are the possible scenarios?
· Be sure to view the rest of the week’s event risk on the DailyFX Forex Calendar
To discuss these or any other FX topics with the DailyFX analysts, check out the Forum
Click Link to Listen to our Evening DailyFX Radio PodCast:
http://media.dailyfx.com/podcasts/FXRadioPM082207.mp3
Tags: carry trade, carry trading, dailyfx, dollar, forex
Topics: DailyFX Radio Podcasts | No Comments »
GBPJPY - Falling Off a Cliff
By Eliseo Agas | August 15, 2007
So the bears finally won out and crushed this pair mercilessly yesterday and into this morning. The same action played out across most of the other JPY pairs. I noted in my previous post that waiting for the market to choose a direction before doing anything with this pair was the way to go. Now that it broke downward I’m patiently waiting for a bounce before potentially shorting into this action.
This and other JPY pairs are notorious for fast and furious moves so beware and be prepared. Look for a solid bounce on the Daily chart followed by signs of weak buying before timing your entry to short. This could easily be said for any of the other JPY crosses as well so this opens up the potential opportunities for us to lock onto.
Tags: carry trading, dollar, forex, forex news, forex trading, gbp-jpy
Topics: Better Use Charts - Use Charts Better | 4 Comments »