Monday, May 25, 2015

CCY Corner: USDJPY - AUDJPY Cross Trade Strategy

The more positive tone coming from Fed Chair Janet Yellen have proven to be a hawkish sign for the USD as the Fed would still raise rates this 2015. However, implying that the markets would be 'choppy' is being noted by other analyst as to how an economist would stand on an assumption that stock market price behavior would take place even before any rate increase can be made. 

A better than expected reading on inflation have proven to be an initiative that the Fed's expected action takes place in the order it sees fit. Thus this would still be positive influence for the interim trend with the US Dollar, especially opening with a small gap basis point from Friday's closing @96.10. This was a spill over effect based on a the likelihood of US rate hike with prices in the Asian opening earlier leading a firmer USD. 

Alternate price action other than the European majors have shown its effects with the USDJPY's recent price swing higher to 121.75 but failed to sustain the daily resistance level nearing 122.20 that would trigger trade interest to move higher. The range bound in prices within a similar consolidation period for the USDJPY reflects that it is preparing for a break which tends to follow its primary and interim market trend higher. Although no significant volumes and price momentum have shown that a follow-through would follow within the next few trading days. 

CCY Corner: USD AUD JPY Cross Trade Strategy

Sunday, May 24, 2015

Growing Wealth and Directing the Right Instruments

Defining a trade can best be made by conducting market meetings to enable traders and investors to have a strategic plan of action that would cater to both sides of any market condition due to upcoming risk events.

However, this does not necessarily mean that traders would have the same similar position, market price and timing the trade execution within the three major markets. What is equally important is to grow the equity and value of the portfolio while simultaneously preserving wealth by being flexible and adapt to market conditions from time to time.

Directing & combining equities, Exchange traded funds, (ETFs) over standard mutual funds or bonds and the liquidity of the foreign exchange market would have its advantages as long as asset allocation and distribution would be carefully considered. And portfolio commitments have a well defined risk classification that can provide a manageable yield over a specific time frame flexible enough to be adjusted moving forward, While adapting to market changes and to have the accessibility to harvest short-term market price fluctuations without disrupting the overall projection of its core value of the investment funds in the portfolio.  

Tuesday, May 19, 2015

CCY Corner – US Dollar Index (DXY) Sequence ll

Validating a technically motivated signal & Market Call Dated 6th of May and Confirmed by a fundamentally driven market report as of May 18, 2015. Market Timing is always crucial for anticipating a market mover with manageable risk that is well defined for both entry and exit strategies.

A double whammy has hit the market with the US Dollar recovering first from the declining Euro at the start of the week’s trading week due to the renewed concern over Greece. This issue has always been on the back-burner until such time a resolution can be cleared.

The secondary catalyst for the US Dollar’s current surge came from the positive US construction pace since 2007. Although other analyst have been crunching the numbers in question and seemed to be unconvinced. When such positive sentiments combines with jobs growth then investors would react with increase vigor that may even push the overall markets to the next level.

CCY Corner – US Dollar Index (DXY) Sequence ll

Sunday, May 17, 2015

DOW EPHE ETF v. PSEi - Market Insight

The Dow previous high @18288 is merely a stone's throw away from last Friday's closing price @18251.97. The volumes are on the average trading sessions have been at even par on the daily turnover; while money flow towards the major index have been increasing with full interest for bull players in contrast to some analyst and activist investors still looking for the " boogeyman " in the market to drive it lower. 

The positive tone from a range bound price consolidation would take its breaking price swing in favor of the primary trend. That is if no such contrary report would contradict current market sentiments. Daily session pullbacks are still expected but limited to profit taking rather than short-sellers anticipating a correction as it had always been expected and speculated on by a lot of earlier bear callers.

DOW EPHE ETF v. PSEi - Market Insight

Saturday, May 16, 2015

How Significant is an 'Interest Rate & Currency Swap' for a Forex Investor?

Since global rates are in the limelight, we thought of sharing this information to remind us all how significant rates and swaps are in forex trading positions for the majors and cross rates particularly the Euro and the EURGBP just as an example. So consider 'alternative trades & strategies' in offsetting transactions that would only deliver value in trading and investments. Cross market strategies between currencies, stocks, futures and ETFs are valuable to one's portfolio.

A refresher for investors and traders who value rate differentials in trading and investment. The information and analysis found on and shared information are not typically found in most seminars. Trading the financial markets are risky and should carefully be studied before getting involve.

Some due diligence is required
How Significant is an 'Interest Rate & Currency Swap' for a Forex Investor?

Friday, May 15, 2015

Insight on Cross Market Strategy

Dow Jones US Dollar & Euroepan Majors:
Since the general price action in the European majors made a run and with Stocks across the board have pulled out ever so closer from its consolidation, by the end of the trading week would provide a relatively good market daily session pullbacks for position adjustments and settlements. There is no sense to speculate or contradict an established trend that has been defined for some time. This also goes the same with the Dow Jones and the other major indices that has gained back their footing from a consolidation. 
This is of course whenever a surprising market element that would ignite a market breakout for the Dow Jones would not be discounted.
       Insight on Cross Market Strategy