Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 15 October 2013 at 14:50 GMT

Renewed USD love as politicians keep looking for US debt solution

Director / Accumen Management
United Kingdom

The main news, fit to print and/or otherwise digest? No new movement on the debt debacle in Washington and renewed (albeit perhaps temporary) love for the USD. The latter is of more importance as far as traders are concerned and came somewhat out of the blue and unannounced in the wake of the ZEW print this morning. Which incidentally was mixed but overall slightly better than expectations. Various reasons were fast and flowing for why the USD was getting bought across the board, not least of which was chatter around USDCHF and EURCHF stops being taken out. But honestly, if you’re to argue that the USDCHF stop hunt was solely responsible for a broad USD move across the board, then, I think you may be reaching smalls too far.

Nonetheless the move happened and even the Cable with better CPI and RPI prints (intimating higher rates sooner) was subject to losses as profit takers swooned on the initial spike and then promptly drove Betty through well known stops into 1.5950 and lower. The least affected pairs were the AUDUSD and USDJPY. While both had related moves, the magnitude of each was far too insignificant when being compared to the EURUSD and Cable. That in itself is quite telling I feel. While the lack of downside in the AUDUSD can be offset against the EURAUD move, the follow through in USDJPY is an entirely different story.

Since all this however, nothing, quite literally nothing has happened in the market.
More double talk from Washington and general confusion reigns supreme and no single market participant is any the wiser. Status quo maintained.

For what it’s worth, I feel the Americans will miss the Thursday deadline, which in itself does not automatically mean a default. An initial knee-jerk reaction lower in panic stricken markets, which very and I do mean very quickly will be followed by renewed enthusiasm while awaiting new headlines and soon to be found solutions. How this plays out in the FX market is not something I feel all too certain about. However, gun to head, I would look for USDJPY to check recent lows into the 97.00 handle.

Little else to add today folks... it’s tough out there.

Helmets on and good luck.

5y
Ann Smith Ann Smith
People are very poor today. They don’t have extra money. They live from wage to wage. Most of us are searching for a way how to improve financial situation and pay back debts. You can turn to <a href="http://personalmoneyservice.com/">helpful Personal Money Service</a> and forget about lack of money. It’s the only good and helpful way of taking money. Also I think that government hat to help people with minimum wages.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail