Damn, glad I was already long. Still, I'd like to know what happened. Was it the Fannie/Freddie seizure?
it is the fact that the US national debt has practically doubled over night as the 5.4 trillion in MBS gets backed by the treasury. decreasing our "credit score" if you will
Seems like it was a huge bear-trap in the EURUSD. Questionable move ahead of the Fannie-Freddie bailout, though. I think there is stronger probability of a sharply weaker USD towards the end of the year, it will be an interesting December no doubt... and 2009 will see further weakening of USD vs EUR. I think we will see well past 1.60 on EURUSD and some rocky territory before the trend is strengthened further with new records. The decline from 1.60 has been very sharp - accentuating the effort in the market, but the fundamental weakness with expected OPEC resistance to oil prices below USD 100 from Venezuela, Iran etc makes it likely that pressure will increase. The continued weakness, interventions and erosion in US economy speaks for much higher inflation and weaker USD. Between 1.30 - 1.40 there will be considerable support, although the instability may prove such that it keeps over 1.40 for most of the time towards regaining it's previous track for newer highs. Certainly an area to watch very closely for longer term positions, as it no doubt will be hard fought.
way to fight the trend into the weekend lol. hope the carry was worth it! you better have taken something off we are going to new lows!
A bank with a market cap of $8m being seized by the FDIC moves the EUR/USD 100 pips? That's hilarious.
I use a hedging strategy on EURUSD and I was *net* long. I don't do the carry thing. It's now moved against me overnight so I just re-hedged; I'm now waiting for whatever directional move will increase my position in that direction.
"Hedging strategy" seems to consist of running to the board to crow about about being on the right side of a big move, only to have the move reverse in the space of a couple of hours, and then say you were just hedging.