Vekslers Forex Blog

The data doesn't lie, but the FX market doesn't seem to care

Ken VekslerKen Veksler , Director, Accumen Management
United Kingdom, 24 October 2012 at 11:16 GMT+0
Recommended Recommend Unrecommend Recommend

News overnight has the unofficial PMI print out of HSBC in China coming in better than expected and the best it’s been for 3 months. Let’s just wait for the official version from the government, shall we... Elsewhere the Australians all of a sudden have higher inflation than previously anticipated, thank you carbon tax, and the market now reduces the likelihood of a cut from the RBA... The interest rate market has decreased the chances from 80% for November to now around 60% or so, and more so Tier 1 economists are calling for December as an early Christmas present to suffering mortgagees... Personally I’m not quite sold on the idea just yet, nor do I think that the AUDUSD “carry trade” is dead and buried just yet...

On this side of the great divide, we’ve had yet another raft of completely rubbish PMI and IFO data in Europe this morning. Again no surprises, and nor was the ensuing sell off in the EURUSD and European cash bourses. Last minute longs were cleaned out in the single currency, while someone with a left hand side axe in EURGBP saw the cable look a lot healthier than it perhaps should otherwise. A UK clearer was the purported buyer all morning and not even ACB sales ahead of 1.6000 was enough to deter Betty from edging higher.

Later today we have (in an unprecedented move) Super Mario speaking to German parliament (wonder if he’ll be heckled by Mr. Weidmann) explaining why the OMT is a necessary evil and why the Germans should show their fully fledged support. Good luck, Mario, hope they don’t have any fruit and veg stalls parked out the front of the Bundestag...

We continue to trade in and around mid ranges in most of the major pairs and with the FOMC ahead of us tonight I don’t expect any major changes to the landscape, even with the US PMI out later this afternoon.

I remain sidelined for now and look for fresh guidance...

Helmets on and good luck out there.

Comments

Content provided by Accumen Management

Disclaimer

None of the information contained in this blog constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy. This material is produced for TradingFloor.com and its readers only. In providing this material the author has not taken into account any particular recipient’s investment objectives, special investment goals, financial situation, and specific needs and demands and nothing herein is intended as a recommendation for any recipient to invest or divest in a particular manner and the author assumes no liability for any recipient sustaining a loss from trading in accordance with a perceived recommendation. All investments entail a risk and may result in both profits and losses. In particular investments in leveraged products like foreign exchange can be very speculative and profits and losses may fluctuate both violently and rapidly. Speculative trading is not suitable for all investors and all recipients should carefully consider their financial situation and consult financial advisor(s) in order to understand the risks involved and ensure the suitability of their situation prior to making any investment, divestment or entering into any transaction. Any mentioning herein, if any, of any risk may not be, and should not be considered to be, neither a comprehensive disclosure or risks nor a comprehensive description such risks. Any expression of opinion may be personal to the author and all expressions of opinion are subject to change without notice (neither prior nor subsequent). Whilst reasonable care has been taken to ensure that the contents of this blog are not untrue or misleading, it has not been the subject of independent verification and no representation is made as to its accuracy or completeness. No liability is accepted for any loss arising from reliance on it.

Disclaimer

Saxo Bank provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Saxo Bank accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Please read our full disclaimers:

Disclaimer

Saxo Bank provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Saxo Bank accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Please read our full disclaimers:
Feedback
Dismiss

Oops! There was a problem communicating with the TradingFloor.com servers Connection Error! {time} {code} {type} {message} .

Oops! There was a problem communicating with the OpenAPI servers.
Oops! There was a problem communicating with the Financial Calender servers.