The Swiss National Bank has been intervening in the currency market since March. Unlike other central banks who have failed at intervention, the SNB has done a fantastic job keeping EUR/CHF above 1.50 for the past 3 months. The SNB focuses on EUR/CHF over USD/CHF because the European Union is by far the [...]

Posted in Currency Intervention, EURJPY, Swiss Franc, swiss national bank 1 Comment »

We all know that Japanese traders have been obsessed with the carry trade. However given the more than 30 percent decline in many of the Yen crosses last year, many people may be wondering how many Japanese carry traders are still in the game. Can these traders still remain committed to their [...]

Posted in Carry Trades, EURJPY, Forex Technicals, Japanese Yen, forex blog, japanese retail positioning 1 Comment »

The US dollar is tanking as jobless claims rise by the largest amount since November 1982, 26 years ago. As I have suspected, it is the 1980s all over again.
This confirms that the 533k drop in non-farm payrolls last month will not be the bottom in the labor market. When claims first [...]

Posted in EURJPY, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Japanese Yen, US Dollar, US Economy, US Treasuries, beige book dollar, dollar recession, eur/usd, euro, forex blog, jobs, non-farm payrolls, oil dollar, recession, usd/jpy, zero interest rates 1 Comment »

Forex trading ranges have exploded over the past few months. The daily average trading range has doubled for all of the actively traded currency pairs in 2008, with some currency pairs even seeing a 200% rise in their average daily range.
However the big explosion in volatility has actually happened in the past 9 weeks. [...]

Posted in Day Trading Currency, EURJPY, Forex News, Forex Technicals, New Zealand dollar, USD/CAD, currency trading ranges, eur/gbp, eur/gbp record high, eur/usd, forex blog, forex book, fx trading ranges, usd/jpy 8 Comments »

Most currency traders only have their eyes on the “majors” such as EUR/USD, USD/JPY, and the GBP/USD. Admittedly, these are the most liquid currency pairs, but sometimes opportunities could be missed if you are not also looking at the crosses. Trends are usually more powerful in the crosses than the majors and you [...]

Posted in British Pound, Canadian Dollar, EURJPY, Forex News, Forex Technicals, GBPJPY, Japanese Yen, New Zealand dollar, USD/CAD, dollar rally, eur/usd, forex blog, forex signals, usd/jpy 2 Comments »