Strategic Insight: USD CABLE EURO

The significant decline in the USD has caught a lot of market participants breathlessly covering positions on both sides of the market place. With the US government's triming down its 4th quarter growth estimate have dragged the USD Index down to its lowest level @79.69 basis point.

With the US economy expanding to 2.4% annual pace as economist expectations was actually lowered from the original downward revison earlier reported at 3.2%. What the market has absorbed earlier in the week was just for starters as another round of influential data from both sides of the continent would be out this week from the US ISM - Manufacturing & Non-Manufacturing PMI(USD), the RBA Interest Rate(AUD), EU GDP figures and UK inflation report including rate decision, on top of ECB Draghi's speech on Thursday (Mch 06). And finally culminating the week with the US Non-Farms Payroll and unemployment rate (Feb).

Strategic Insight:

What is a 'Variable Ratio-Risk Analysis vs. Event Driven Risk Analysis for an investor?

First we do need to define what a'Variable Ratio-Risk Analysis (VRRA) mean to an investor. The VRRA as we termed it is the study of price changes similar to Price Action analysis, but goes deeper to the understanding of the statistical relationship among variables that make up the building blocks of the investors asset exposure.

The investor's portfolio either in Foreign exchange or related financial instruments that has in some form or another is influenced by global market conditions.in  prices. This also includes certain currency hedges that can be structured to control the total amount in currency holdings, stocks, treasuries, interest rates and other forms of instruments affecting the price fluctuation..

Please take note that there at least 5 Event Driven Risks for this week's trading activity.

VRA vs. EDR Analysis