Forex Managed Account News
The correction continues as we see the majors give back a good percentage of last years gains. Just when you thought we had reached a bottom the US takes a little bit more ground away from its counterparts.
To put it in perspective, the average daily range for the Eur is approximately 80 pips up or down and with the market swinging it’s usually held within a range of 200 to 300 pips. Since the 15th of July when the Eur was at 1.6038 the Dollar has headed in one direction and gained back 1,557 pips or roughly 15 cents.
Against the GBP the tally is closer to 2,351 pips or the equivalent of more than 23 cents.
We needed to level the playing field and the Feds started looking for corrective measures last November when the housing market gave signs of trouble. Since that time we have bailed out mortgage companies, failing investment institutions and just plain printed money to boost our economy.
So far it seems to have helped but at what cost. Too little can starve a nation and too much can choke it.