4 June Bernanke buying USD

USD has not budged much, infact just a plunge and that is it.

Hence, post NFP, US Treasury and FED is going big time to intervene in the market by buying up all the USD out there. Bernanke is going to protect his reputation by all means.
The only thing that can thwart FED intention would be a "Black Swan" event.

We may see 1.5000 within a short time.

It is going to be violent in both directions. Hence stay out.

Long term view, in Martin Feldstein recent article, USD has a lot more to fall, due to its increasing deficits when Oil rise further. (it is an acknowledged fact among the insiders that Oil has a lot to move)

3 June Bernanke show hands

as I have said, the FED and Treasury are now into the market, intervening to support the Dollar.

Bernanke has said explicity that it is onhold. the current rate is conducive to promote growth.

Giving support to DOllar when the Hedge Funds are taking profit on their Oil Trade and switching their DOllar out into other currencies.

The high oil was waiting for the push on the Dollar before they are willing to take profit.

however, is USD really so attractive overnight ?

USD has been many time longer on earth than Euros. There are still droves of pple waitng to cash out of USD.

As I have warned my Readers, the spike up in the Europe open was a fake move.

Not too long ago, Bernanke was once talking about watching inflation, and then when the subprime hits, he quickly changed tune and cut 75bp.

FED has a crediblity problem. And we know that there are more subprime out there.

Hence the money mongers are setting up another show, first a Goldilog scenario, economy is on recovery, interest rate is right. Sucking in all the monies.

Then suddenly a bad data, and then market plunge again. While the Funds would have finished selling into the rally.

What is the Money mongers need now is to take profit. And FED and Treasury is in cohoots to make that happen, a higher USD, to allow the Oil funds to cash out, and then a market rally to allow the Funds to sell into it.

Then the top has come, and another plunge begins. This would be the mother of all plunge. S&P would be into 1100 territory.

FED would have to start to cut again, and Euro return to test 1.6000.

It is all too familiar.

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Gold broke 890

at 8:55 am ET, Gold finally broke 890. should bring it down to retest 850 very soon.
let say a 50 USD drop within a day or two.

WTI crude still holding at 129. Would crude takes the hint ?

Soon EURUSD may be breaking down again towards 1.5400.

US Treasury has finally shown its hands............

Now US has lost its authority to accuse China of manipulating currencies.

Hence we may see CNY weakening going forth. The reverse of the ever rising RMB has finally begun.

Today 29 May marks a turning point in USD history. It has lost its legitmacy as a World Reserve Currency, as it is no longer a stable FREE FLOATING currency.

29 May USDJPY to challenge 106

USDJPY carry trader trying to make a breakout.

Not an opportune time for Carry Trade to resume, when bank risks are worsening, property prices dropping. Hence USDJPY should not rise much further. 106 should be the cap.

Month ago, in my blog, I mentioned that Banks like HSBC was offering Euro deposit at 4.25% interest p.a. for a 2 months fixed deposit.

Imagine how can they possibly make monies when ECB rate is at 4% ?

Obviously the Banks entice the masses to buy Euro and then they sell Euro into the market, and make the difference when Euro weakens. The Banks are confident of that b'cos after the Washington IMF World Bank meetings, there seem to be a consensus among institutions or Central Banks to allow a stronger Dollar to stall inflation.

However never did they then foreseen Oil to rise above 120-125.

Hence the 1.5800 upto 1.6000 level is heavily defended, as a lot of Institutions Long positions with stops at that levels.

However, it also means there is a Crown Jewel out there for the taking. Whoever can
push it through 1.5900 to 1.6000, has a lot to gain, both in Forex and Equities.

Hence, who would be the Black Knight ?

Shall I call for battle to push Euro to 1.6000, if yes, pls click on the Google Ads.

22 May Euro rose as expected

IFO rekindle the passion in Euro. Would it return to 1.6000, the answer is in my subscription.

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21 May BEAR TRAP ?

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19 May It was a bull trap as I forecasted

indeed Bull trap. those who follow my chart, would have got 100 pips instead. A bit tricky though as there was a pike up 1.9630 to clear stops.

Earning quick pips is easy. If you are trading big time, you better subscribe to my letter to hedge your risks.

At least, you know you are trading in the right direction. How many pips you get, is a matter of practice and skills.

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