- 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 hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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