Anything for coffee Knez….dress in camoflauge, a fake mustache for incognito look, a little ted nugent in the earbuds … board the plane, ready for action! Ahh The life of a currency trader.
Frank – As long as the US Bank Index holds 3610 its all good. Millennial crypto fanatics all over the net are hoping it means, and are sure it will, mean the end of the US Dollar and in April when Bitcoin halves they believe it will double in price almost immediately. So they can tell mommy and daddy they are smarter than they were. So, of course I got rid of all of my US Dollars and have zero cash and only bitcoins. The problem is no one wants them when I want coffee. What to do.
Today is the day the bank term funding program expires. Some are talking about the impact that may (or may not have) on banks and liquidity. If it’s a problem most likely first signs will be in equities…. Especially overleveraged overvalued equities….
My overall sense is a bit like this – US tech stocks suffered the largest outflow on record in the week ending March 8 2024. Virtual confirmation that the Fed will drop govt lending rates in June, which speaks of a moderately slowing economy and inflation cooling due to demand slowing up. Demand for labor is slowing as well. Portfolio flows are reducing risk appetite and re-allocating into money market funds, gold, and other assets, including crypto and foreign exchange, so the areas where risk appetite is strong is adjusting gradually…economy should cool a bit in spots coming up.
This is one agonizing day if you trade EURUSD – it goes nowhere , for now…so sitting and watching as the grass grows…
I remember clearly the days when we could switch from USDDEM to DEMITL and just ride it….or from USDDEM long to USDFF short , holding Long USDDEM and take advantage from both sides.
This caught my attention in the Reuters Morning Bid report I posted earlier
Yet, the BOJ has made it clear that official rates will only be going to zero and there will not be a series of hikes, so the death of the carry trade is likely overstated.
Note USDJPY bounced after staying above 146.50
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