Fx For Thought : We Are Herds
Not a single currency beat the USD in the last week.
It was not about the pain index, the PMIs, which were in fact quite good for Europe, political turmoil in Egypt, Syria, Turkey, Brazil or Portugal, it was all about the central banks.
Australia, UK and Europe all on a weakening stance, China adamant on preserving the integrity of her currency and importing more gold again which effectively takes up 2,000 tonnes against the entire year’s production of 2,500 tonnes http://www.zerohedge.com/news/2013-07-06/china-radio-us-and-europe-have-always-suppressed-rising-price-gold
Thus it appears that markets are all about The Shepherd – The Fed. Minutes out on Wed.
Let’s just ignore the Japan Upper House elections, BoJ, Bank Indonesia, Thailand, Korea, India and Malaysia meetings. Singapore GDP.
JPM recommends :
– Sell EURUSD at 1.2830, stop at 1.3080.
– Sell GBPUSD at 1.4895, stop at 1.5190
– Buy USDJPY at 100.90, stop at 98.90
Looks like its status quo.
A little thought is brewing inside me. No country is an island. US, for its might and power, I am starting to distrust.
I will not be doing much. I am neither herd nor shepherd.
Fell off the NEER hanger, about -50 off the mid point and folks are starting to look to MAS and her USD 327 bio for support.
My call remains as it was last week.
And the week before.