FX Trading - Here Comes The Sun

Greetings fellow traders, I was just surveying the news for 7th April 2011 and here's what i read.

The Bank of Japan ended its 2 day policy meeting by announcing a rate hike, the first in anybody's memory, as it seeks to attract more funds into the country. They expect a resultant boost in bank reserves to lead to increased lending, which will help industry and firms as the country attempts to recover from the recent disaster. In other news, workers at Tepco realized that their radiation detectors were calibrated wrongly and radiation levels are actually 100 times lower than reported so far.

The Bank of England hiked rates by 12.5 basis points as policymakers decided to come to a compromise and wondered why they had to restrict themselves to a 0 or 25bps increase. Number crunchers rallied against the extra decimal place but are expected to be pacified with a pint or two on the house.

The ECB held off a widely expected rate increase as it decided that an extra 60bps here and there in inflation numbers hardly warranted 'making things difficult' for Portugal, Ireland, Italy, and Greece. 'The fate of many is more important than my sterling reputation', said Trichet, in what could have been a poor translation.

The US announced an immediate government shutdown as politicians 'simply gave up', according to reliable sources. President Obama later appeared on national TV and apologized to US citizens on behalf of his dysfunctional and inept government, and also to the world for the failings of the United States, promising to relinquish the role of World Superpower to any takers, proposing a 'World Idol' TV show to select the next global leader.

The ensuing Gold rally eclipsed all other moves in the markets.

Oh, and we've taken out half of our GBPUSD longs to lock in profit while waiting to see how far it ventures into the 1.6350-00 area, and our GBPJPY stops have been adjusted higher. There's UK IP and manufacturing numbers out later followed by Eurozone GDP, so there may be some interesting moves ahead even before tomorrow.

Peace.