FX Trading - Obscured By Clouds

EURUSD threatened a reversal on Wednesday with losses accelerating after repeated failures at 1.4520 recent highs, followed by the release of a relatively upbeat Beige Book report. But hey, if you've noticed anything recently it would be that dips are only to be bought into. So that's what happened early Thursday with USD selling across the board. 

UK Consumer Confidence numbers came out better than expected (what was that 'action for happiness' piece in the Telegraph again?), giving a boost to GBPUSD (amazing how it's been building a bottom these past couple of days). Singapore's MAS adjusted the super-secret SGD trading band, allowing the currency to appreciate to record highs against the USD, (with CNY following suit) adding to the theme of USD weakness. China denies earlier reports of Spanish investment, the BRIC countries again bring up the reserve currency issue, and no one is sure if Obama's speech means anything to the markets, although it's clear the man talks well, that's for sure. A whole bunch of Fed officials will be trying to match that later today.

So boys, looks like it's back to the same for now - sell USD, buy everything else.

GBPUSD - a lesson in foundation building

Trading

Yesterday was an atypical day for us, as we reversed initial longs in EUR & GBP only to remain long GBPUSD by day's end, with the range bottom almost tested but still intact. Too much action in too short a time, as nervous markets and traders get spooked at the slightest hint of risk unwinding. We have since took profit on half of the GBPUSD longs as the pair nears the top of its previous range. Stop for the remaining position lies at 1.6280. 

Peace.