At the beginning of the year, I said my New Years resolution is to blog more so here I am trying to stick to it as much as possible.
You probably don’t know that I am a big fan of skiing but I love the exhilaration of being on the slopes and being outdoors enjoying the fresh air.
This past weekend I skied Black Diamonds in Vermont for the very first time ever and I did not one but 5 Black Diamonds! For those of you that are not familiar with skiing, there are 4 categories:
Green – the easy stuff
Blue – intermediate
Black Diamond – expert
Double Black Diamond – the really hard stuff with rocks, trees, moguls, ice and bumps
I am extremely proud of myself and I’m still reeling from the high. Unlike previous years, I have been training hard for this season – going to gym and taking spin and other aerobic classes 4 times a week. Practice and preparation is the key to all success and this applies to both skiing and trading.
When I look down at the Black Diamond slopes, I am no longer intimidated but I know that in order to replicate my performance the next time around, I have to keep up with my practice and preparation. Hopefully there are some pearls of wisdom here that applies to trading as well!
Finally, here’s a pic of me at Killington surveying the slopes before I head down.
I am headed out to Vegas for the Forex Trading Expo. If you are coming, please stop by at one of my presentations.
Here is the “In the Financial Papers Radio Broadcast” (Length: 4:45 minutes). The player should load automatically. Please let me know if you like it. Contact Kathy
Read my Daily report on DailyFX.com
In the Financial Papers:
Treasury and Fed Peldge Aid for Ailign Mortage Giants
Retailers Collapse Hits Mall Owners
Bank Fears Spread After Seizure of IndyMac
Crisis Tests Faith in US Economy
IndyMac Closed, Operations Transferred to FDIC > home equity lines frozen
UK Ad Spending to Fall by Largest Amount Since 1991
InBev Will Buy Anheuser-Busch for $52 Billion, Form World’s Biggest Brewer
Key FX Events this Week
Here is the “In the Financial Papers Radio Broadcast” (Length: 5:11 minutes). The player should load automatically. Please let me know if you like it. Contact Kathy
In the Financial Papers:
Europe Producer-Price Inflation Accelerates to Record
Overdue U.S. Home-Equity Credit Lines Climb the Most Since 1987, ABA Says
Job Losses in U.S. Increased 47% in June on Finance Cuts, Challenger Says
ADP Employment Report Weaker than Expected
Starbucks to layoff 12,000 people
Australian retail sales rose in May at the fastest pace in six months, sending the currency higher on speculation the central bank will boost borrowing costs again this year.
Central Banks May Disrupt Dollar’s Calm
ISM Manufacturing Number
Europe’s Recession Fears Intensify
Moody’s to investigate staff over ratings bug
France Tries to Take Away’s ECB Independence
IMF Warns of Threat to Poorer Nations
Inflation Accelerates Despite Signs of Slowing Growth
Two significant milestones have been reached in the financial markets today, one in stocks and one in currencies.
On an intraday and possibly even on a closing basis, the Dow Jones Industrial Average has broken the Bear Stearns low. It was in the middle of March that the Bear Stearns debacle became public, sending the Dow to a low of 11,731. That level was broken within the first minute of trading today.
In the currency market, EURJPY hit a record high of 169.46.
The parabolic move in these two assets are driven partially by the 3 factors; the rise in oil, the technical break of a previous low and news that Goldman Sachs put Citigroup stock on its sell list and downgraded several other brokers. This drove Citigroup stock to a 10 year low.
The market was already bearish dollars following the FOMC rate decision. Today’s breakdown in US stocks and mixed economic data has sent the US dollar even lower. GDP and existing home sales were stronger than expected, but jobless claims and the help wanted index deteriorated, pointing to a weak non-farm payrolls report next Thursday.
Meanwhile is interesting that EURJPY which is often times considered a carry trade currency is not necessarily moving in lockstep with the Dow. It did give back some of its gains but given the move lower in USD/JPY, it is clear that the rise in EUR/JPY is driven by the move in the euro. The relationship between the Dow and carry trades has broken down as the monetary policies of central banks around the world diverge.
Expect this trend to continue in the coming week.