Usd/JPY just lost its momentum. Euro, Aud struggling again. I sense the market is going to have a big move, cause it's pretty tightly wound up here. I just don't know which way.
Long usd/JPY, short euro, aud. I strongly believe there are traders trapped long here, based on today's action.
Market of currencies today, not so much a currency market. Hard to pick out trend in dollar. Crosses.
Finally got some downside movement in Aud. It's still range bound as we sit here. Flat. Slightly positive day after a horrendous day yesterday where I did everything wrong. That's how I figured there were traders trapped long against the dollar, cause I had been one of them . Hook, line, and sinker I swallowed. Then I spit it out and swallowed it again. Cautious now going into Yellen speech, which is an exercise in ridiculousness.
Euro, aud, Nzd, really tightly wound. Treading very lightly. Managed to take a few pips earlier, mostly in GBP on its push down. Looking forward to the end of summer already.
I'm still skeptical, no matter what she said. Euro still range bound, same with Aussie. Maybe it's a different range, so what?
Well, the currency markets seem to believe her, at least for one day. So I have to respect that. However I'd like to point out that if the dollar increases, she's probably not going to get her 2% inflation, nor full employment. So actually just by talking she can achieve something. If she actually does something, I don't think the economy will be able to take it. So then they are definitely not hitting their targets. The whole thing stinks IMO.
I'm Short everything against the dollar from this evening. Too much turmoil going on with the bond market. I sense a flight to quality. Euro again the strongest in this situation, so I'm looking to get out of that first.