So you see the ECB breaking ranks with the Fed? Fed pretty clearly can’t talk up the rate cut prospects at this point. Meanwhile ECB tomorrow says we’re on track for June cut?
Looking past the next 5 minutes, maybe the question to be asked and answered is, Does the ECB break ranks tomorrow with the Fed, and not necessarily come thru with an immediate cut, but lean hard in that direction? Personally I don’t see them having the huevos to do so. And if they don’t come across as cuts imminent, then what?
Well, I cut half, still in, green no matter. Spreading your positions is a good idea. If Euro holds the sell pressure that is a major run uphill. If not, hold the Sterling shorts (there is a reason you want me to play lead guitar in your rock band lol)
For novices watching us currency traders go at it in spot, do not make the trade I just did in Euro, it is very high risk and like catching a knife. As mentioned I am hedged elsewhere, without it that trade is a naked position in a very volatile environment, best to throw out every indicator you watch and just try to get a feel for the market. Holding the long and lets see what happens, I won’t lose money either way but stand to gain big.
Ok miscalculated by a hair, lets see what it does, I’m spread elsewhere so no big deal, if it holds we are gold, if not, hedged elsewhere and cut and run
Bobby, watching the band Baby Metal and the song Karate helps while trading…the CTA has spoken lol (i really am a kung fu instructor)Â I like Jay’s sports analogies
Theoretiaclly all is possible – if for example ECB lurkes somewhere here, buying the EUR, we could see an Up tick of more then 100 pips…and that would negate this move down…however….
