Category: EUR/USD

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Legal risks: Trump is getting the weakened dollar he wants. Does he have cause for removing Powell?

12 USC Sec. 242 says the following about the eligibility, selection, and removal of a member of the Board of Governors of the Federal Reserve. Hold tight. It’s a mouthful: “The members of the Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, … Continue reading Legal risks: Trump is getting the weakened dollar he wants. Does he have cause for removing Powell?

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Not much moved me about Chairman Powell’s testimony this week …

Jerome Powell, chairman of the Board of Governors of the Federal Reserve System wrapped up his semi-annual visit to Capitol Hill basically saying all is well with the Fed’s implementation of monetary policy. Chairman Powell assured both the House yesterday and the Senate today that the labor market was at or near maximum employment although … Continue reading Not much moved me about Chairman Powell’s testimony this week …

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Binary options: Miki Bowman speaks at 10:00 am today in the midst of intensified global risks …

Michelle Bowman, the Board of Governors of the Federal Reserve System’s vice-chair for supervision, will speak at 10:00 AM EDT at the International Journal of Central Banking conference in Prague. As vice-chair of supervision, Vice-Chair Bowman is responsible for the Board’s understanding of banks’ operations, banks’ major risks, how well banks manage these risks and … Continue reading Binary options: Miki Bowman speaks at 10:00 am today in the midst of intensified global risks …

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Nothing surprising about the Fed’s decision. More surprises in FX at 2:00 pm.

The Federal Open Market Committee decided to maintain its target range for the effective federal funds rate between 4.25% and 4.50%. The FOMC reiterated its intent to stay focused on the incoming data. This data would include information on labor market conditions, inflation pressures and expectations, as well as financial and international developments. What I … Continue reading Nothing surprising about the Fed’s decision. More surprises in FX at 2:00 pm.

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U.S., Israel, and Iran: Yesterday’s 3pm EUR/USD expiry at 1.14794 took me for a loop.

Leave it to President Trump to cause a market mover in the EUR/USD yesterday when he shared that he was not in the mood to negotiate with Iran. According to FXStreet, a financial media publication, the President’s sentiments helped drive the EUR/USD below 1.1500 indicating a move to safe-haven assets including, ironically, the US dollar. … Continue reading U.S., Israel, and Iran: Yesterday’s 3pm EUR/USD expiry at 1.14794 took me for a loop.

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Binary options: My conservative bet on a EUR/USD close above 1.1520 by 3pm today.

Betting that the EUR/USD closes above 1.1520 by 3pm today seems like a very conservative bet. The spot around 4:20 am was 1.1582 and I calculated a forward price for tomorrow at 1.1860, so why so bloody conservative? In short, the events in Western Asia aka the Middle East are hard to ascertain in terms … Continue reading Binary options: My conservative bet on a EUR/USD close above 1.1520 by 3pm today.

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Binary options: NADEX contracts go dark at 8:30 am EDT. Inflation report looked most messy.

The primary question I ask myself when looking at a binary options contract for foreign exchange is, “Why would anyone buy euros using US dollars?” I had that question answered in part by the report on changes in U.S. consumer prices released half an hour ago by the U.S. Bureau of Labor Statistics. According to … Continue reading Binary options: NADEX contracts go dark at 8:30 am EDT. Inflation report looked most messy.