FX Trading - Benny & The Jets

Well, The Man has said his peace and you can see what markets make of it. No point adding to the noise on the wires, but this being my blog, i'll just note down my take on it; which is this:

Basically, Benny told the whole world to carry on and have their fun, not to worry, he'll let us know in good time when the party's ending. 

It is really quite brilliant that they (or is it him alone) have decided to communicate their intentions in a more regular and structured manner; and while he still makes non-statements and presents a nice buffet from which you can take away whatever you want, at least we get some hints along the way.

And it must be real cool to have your book plugged by none other than the Reigning Fed Chief; you can't have missed the bit where his old buddy mentioned the book he wrote. And what was that thing about Japan? Must be a nice chap, this chairman. 

Party on, Plebeians!

One last thing. It seems clearer to me now. Yes, the US wants a strong USD; all those Tsy Secretaries, Fed Chiefs and other such important officials over there haven't been lying through their teeth. I just failed to understand that what they meant was a strong USD for US citizens living and spending on US soil. They haven't been talking about the FX market or anything like that, what they mean is as long as you earn and spend dollars in the US, and inflation is maintained around the 2% level such that you don't feel your bank notes losing their worth (in the short time spans which mark human memory), then all is well and the USD is 'strong'. Localised spending power - Simple. It's just that rising commodity prices tend to muck things up a bit but hey, like Benny said, it's all China and the emerging markets' fault. To think that I thought they gave a hoot about EURUSD or other such nonsense....  

Trading-wise, our GBPUSD position was taken out before the show began, and apart from a little scalping, we basically missed the chance to go shopping for a yacht this weekend; in the States, of course. We shall remain vigilant and partake in the party the Fed is hosting; 3 cheers for Benny!

Peace