Forex Thoughts : Live Die Repeat, Black Monday

There comes a time … when you heed a certain call, when the world must come together as one….

Yes. Today is Black Monday 2015 edition. A sea of red on equity screens, a mixture of blood and tears perhaps ? And there is nothing like a crisis to unite the central bank folks.

Asian Central Banks From India to South Korea Say Ready to Act

“Asian central banks from India to South Korea said they’re ready to offset market volatility that has swept the region and sent stocks and currencies sharply lower.”

Currencies are going off on all tangents – we have the China-campers vs the developed world and I cannot even imagine the amount of central bank dollars are being put to work today for the fx interventions that are whispered hushedly along corridors.

Forex Thoughts : Live Die Repeat, Black Monday

overnight changes in forex

Even Gold is not spared because its all about unwinding to meet those margin calls and no questions asked about pawning the family jewels and culling those carefully nurtured investments like the massive short EURUSD position that we bet our lives upon back in July.

The biggest gainers these 3 weeks have been the currencies most short by the markets i.e. the EUR and JPY, and the only 2 safe havens we now know as Gold and the CHF.

So much for the safe havens of SGD and AUD, both nice triple A countries but failing to live up their names which cannot be helped especially when we have the MYR losing nearly 10% in 3 weeks with a large scale political protest lined up.

Just when you would not believe it, the EURUSD is now back above pre-ECB QE levels which is bad news for the ECB because the trade weighted EUR has unwound every single buffer that it has built up in the past 7 months.


Forex Thoughts : Live Die Repeat, Black Monday 1


To continue reading….