As a binary options trader, I don’t care about cuts in the federal funds rate outside of where an announcement moves the price of the EUR/USD in the short term. But as someone who has to work for a living and is in need of a boost to their capital, a lowered rate of interest … Continue reading Am I pleased with the EUR/USD?
Over the weekend, I spoke to my contacts in the banking industry trying to get a feel for banker sentiments on the Fed’s interest rate policy. The sentiments boiled down to the banks taking whatever the Fed decides in stride. As one contact put it, it’s about the money and the banks will take what … Continue reading Could it be more about where the banks want to go versus where traders think the Fed wants to go?
Last night I committed the unholy error of trading a period outside of my plan. I trade binary options on the EUR/USD from Tuesday to Thursday. I trade for either the 11:00 am expiry or the 3:00 pm expiry. Last night I was up looking at the data coming through the NADEX and thought I … Continue reading Binary options: Tempted to jump in and trade but will stick to my plan.
In its quarterly report to Congress regarding its foreign exchange operations for the second quarter of 2025, the Federal Reserve and the U.S. Treasury reported that there was no intervention in the foreign exchange markets. The U.S. dollar, as measured by its broad-weighted dollar index, depreciated 5.6%. Cumulatively, the dollar has depreciated 7.5% since the … Continue reading Does Trump want to create a more independent Europe for the sake of competition for the dollar?
There is ongoing concern of a threat by the Executive Branch to the independence of the Federal Reserve System, specifically influence by the Executive Office of the President on the decisions made by the Federal Open Market Committee on monetary policy. I do not think the issue is political threats to the independence of the … Continue reading It is less about political interference with the Fed and more about the degree of interference.
As I write, the EUR/USD is at 1.17139. The EUR/USD has been increasing since 4:00 am when it read 1.16823. All eyes are on Anchorage, Alaska as U.S. president Donald Trump is set to meet Russian Federation president Vladimir Putin to discuss a resolution of Russia’s war with Ukraine. Ukrainian president Volodymyr Zelenskyy has not … Continue reading As the USD continues to weaken, what does Trump get out of mediating a Russia-Ukraine peace deal?
From my events contracts trading desk … As we get closer to the meeting tomorrow between Russian president Vladimir Putin and US president Donald J. Trump, the euro tapered off some of the strengthening I saw from around 4:00 am this morning. The EUR/USD was at 1.16686 and by the close of the 6 am … Continue reading A quiet day at the CFTC and in the markets as well …
Federal Reserve Bank of Atlanta president and chief executive officer Raphael Bostic and Federal Reserve Bank of Chicago president and chief executive officer Austan Goolsbee will each deliver remarks today on monetary policy and issues pertinent to the districts within which their banks operate. President Goolsbee is a member of this year’s Federal Open Market … Continue reading Will Bostic or Goolsbee say something that will move the markets today?
The EUR/USD closed at 1.16624 at 3:00 pm EDT. It was trading around 1.15746 this morning at about 4:00 am. Because there were no major economic data releases today, traders had more time to lament the downward revision of 258,000 jobs in May and June, the potential pullback in consumer spending as a result of … Continue reading Today’s foreign exchange action further confirms that Congress long ago abdicated its duty to regulate the value of money.
Lawyers Write the Bets. Bankers Sell the Bets. 