which currency is going good today

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Permalink Reply by Adam Horak on July 21, 2009 at 8:35am

after the greenback and Yen sell offs over night and bernanke speaking today to congress there are lot of expectations he may outline an exit strategy for the current Quantitative Easing measures this would include four options to drain the Fed funds market of liquidity - i.e. to reduce the reserves: 1) Large-scale reverse repos; 2) Treasury could sell bills and deposit the proceeds with the Fed; 3) Longer-term deposits for bank's funds reserves; and 4) Reduce the holdings of long-term assets by selling them in the markets. Of these four options I think option 1) and 3) most likely. Option 2) has the disadvantage of risking to compromise the Fed's independency and 4) has the disadvantage of risking to spook mortgage and Treasury markets and send long-term rates considerably higher.
during my radio show 7-8 am eastern time I covered these fundamentals and placed a GBP/USD trade on the air, we took the GBP/USD long at 1.6430 with our first target at 1.6460 at this price adjust stops to break even second target at 1.6500 adjust stop to 1.6460 we are closing the trade at 1.6550 we did 6 mini lots with a risk to reward ratio of 1-3 our stop is at 1.6388.

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