- Stop Being Reflexively Contrarian
In trading, not just currency trading but any market activity, the iconoclast gets few rewards. Markets are not mechanism for arriving at economic truths. There is no correct level for the euro or the yen only a price related to information and market positioning. Although there are instances where markets have been predictably obtuse and vast profits were made on the opposite tack, the sub-prime market in 2007 and 2008 is the best recent example of that. Most of those earnings were made in synthetic positions that became impossible to recreate once the market started to move. In currency trading, where any participant may join any move at any time, the most profitable tactic, though not perhaps the most emotionally rewarding, is allied to the general view. Look to the arts for emotional rewards, in trading only profits count.
- Remember that in Writing the Hardest Part is Starting
- Give More of Myself
Joseph Trevisani began his twenty-four year career in the financial markets at Credit Suisse in New York and Singapore where he worked for 12 years as an interbank currency trader and trading desk manager. Returning from Asia he moved to Bermuda and managed the Asian Trading desk and was a proprietary currency trader for The Bank of Bermuda in Hamilton. Mr. Trevisani joined the on-line financial industry in 2001 as one of the founding partners of FX Solutions. Over ten years he served as in turn as Chief Dealer, Head of Institutional Sales and Chief Market Analyst. He joined Worldwide Markets in 2012 as Chief Market Strategist. [More about Joseph Trevisani]
Editors’ Picks
EUR/USD climbs to daily highs near 1.1820
EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.
GBP/USD trims losses, retests 1.3460
After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.
Japanese Yen gives back half of early gains against USD ahead of US PPI data
The Japanese Yen (JPY) surrenders half of its early gains against the US Dollar (USD) during the European trading session on Friday. The USD/JPY pair rebounds to near 155.90 as the JPY falls back, but is still 0.15% down.
Editors’ Picks
EUR/USD: Fed calm, ECB steady, but the Dollar still leads Premium
EUR/USD is still struggling to find real traction. The pair has tried to stabilise, but momentum keeps fading, leaving the door open to further weakness.
Gold: Falling US yields, geopolitics help XAU/USD hold ground Premium
Gold (XAU/USD) gained traction and climbed above $5,200, ending the fourth consecutive week in positive territory. The next round of US-Iran talks and crucial macroeconomic data releases from the US will be watched closely by market participants in the short term.
GBP/USD: Will Pound Sterling defend key 1.3450 support ahead of US jobs data? Premium
The Pound Sterling (GBP) entered a bearish consolidation phase against the US Dollar (USD), after having tested critical support near the 1.3450 level on several occasions.
Bitcoin: Another month of losses, and it’s been five
Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Friday, but the Crypto King is poised to close February on a fragile footing, marking its fifth consecutive month of losses since October and a rare start to the year with back-to-back monthly corrections.
US Dollar: At a crossroads; Fed steady, tariffs in flux Premium
The US Dollar’s (USD) upward momentum from the previous week seems to have encountered a tough nut to crack in the 98.00 region, as measured by the US Dollar Index (DXY).
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