Forex Managed Account News
-AUD
dropped its interest rate -100bps to 6.00% – even more bad news for the carry trade. This is a huge cut with big implications and now rumors circulating about bigger cuts on other pairs. Expected was only ½ percentage point. These rumors could actually help support dollar weakness temporarily.London lost an astonishing 7.85%, and the rest of Europe bared a comparable 7.59% loss for the day. There are talks of coordinated efforts to cut interest rates by EUR, GBP and the US, in recognition of the problems. Let’s hope this will slow matters for all. The US Equity markets gained in late trading on this; would expect Europe and the UK to slow down losses on it as well, but not stop. Asia
is down again about 3% so far today. EJ hit the 135.00 target bounced off of it.AUD
, etc).AUD
lost much of its gold correlation today based on the carry sell off, and given the current conditions; it may take a while to snap back into place.-The Dollar Index closed right AT 81.80, and we could start seeing a pullback here but right now still looking bullish. Next target is approximately 85.00.