Friday May 15, 2009 - 19:25:49 GMT
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Forex Trading Themes for the week ending: 15 May 1009
Forex Trading Themes for the week ending: 15 May 1009.
Themes come from the GVI Forex
Professional Traderâ€™s Forum.
Selected major themes:
- Central Banks: Major central banks are producing lots of liquidity, and those funds have to find a home. Money flowing into stocks, bonds and commodities.
- Japan: "Japanese housewives" have been back investing abroad. Talk they have been big buyers of the Aussie dollar. Talk the Japanese economy has been turning a corner. BOJ said to be preparing the markets for an economic UPGRADE late next week.
- Eurozone: Eurozone economy is clearly headed south. GDP fell -4.6% y/y in 1Q09. Talk of a split in the governing council of the ECB. That certainly does not inspire much confidence.
- Crude headed for $60+. Word that China has been buying crude to build strategic reserves. You just canâ€™t follow the IEA projected demand statistics.
- USD Libor: 3mo USD Libor was fixed at 0.83% Friday, down 11bps in week. This decline suggests confidence is returning to the interbank deposit market.
- SNB intervention: the Swiss National Bank continues to lurk, and surprised traders again with heavy intervention in the EUR/CHF (buying EUR and selling CHF). The SNB would like to see the CHF weaker against the EUR to stimulate the Swiss economy.
John M. Bland is an author and co-founder of Global-View.com . He has worked extensively for nearly four decades in Foreign Exchange. John holds an MBA and A.B. from the University of California at Berkeley.
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