Forex Managed Accounts News
Japanese equity markets showing big signs of strength today following the open, trying to recover from 5 straight losing sessions. US home sales came out a little better than expected yesterday, and the US rallied early on, but just as easily it gave up gains late in the day. Volatility is nonstop. In most parts of the globe, signs of improvement are still very scarce, but Japan’s rebound is sending a big signal.
GBP continue to get heavily weighted by noise of recession and expected rate cuts. EUR hit a new low again last night, but GBPis still consolidated above its 1.5300 level. In the case of both, we see optimistic signs of hope during the day (rises in spot value) as selling opportunities at later times. There was reluctance to sell last tonight based on Japanese market data and severe movements in volatility to the upside yesterday and on Friday, but fundamentally, little has changed.
GBPhas levels of volatility simply no one is used to. We have been joking around that every 5 minutes, another 100 pips come and go. Fading the pair has been rather erratic though playing breakouts to the downside and upside have been working out quite well. Anytime a new base is formed, breakouts have been strong and forceful, something we wish was more frequent than not.
This week will be a stage setter with rate cut decisions being tossed around and the close of the month around the corner. There is certainly a lot of money sitting on the sidelines and for the major fund managers, time is running out. The market needs a sign that money is flowing back in and that this is money that will remain permanent for the market to settle down to normal daily movements with less volatility.
We can all do without the excitement we’ve seen over the past month.