something interesting

<  BACK TO Mr. Markets

Exotic; Great for Cocktails Bad for Traders

FOREX_exotic-great-for-coctails-bad-for-traders2405_FXPIG
No strategy works 100% of the time!

Over the past few weeks the common currency unbeknown to many traders has saved their capital from being totally eroded!

How has it done that? Well, it has finally started to react to macroeconomic activity and provided some basis for traders to (mostly) make money. I had started to read the tell-tale suggestions on social media that traders could start to see value in cross currency trades in pairs that are not usually featured or traded, for example, AUD/CHF or CAD/JPY. There is of course, nothing wrong with those crosses and there are, or have been, several instances when there are specific reasons that trading them works. For example, when there are conflicting drivers for each leg of the pair and a move gets magnified.

Trading these crosses is not to be a panacea to not making money or a lull in the pair(s) that your strategy is designed to profit from. Patience is a part of anyone's strategy or should be.

That is why there is a smile on the trading face of those who trade the euro as a combination of Mario Draghi and vastly increased liquidity had kept the currency on a tight leash for what had seemed an eternity.

A close to six percent fall for the Euro in a month has created the volatility we desire but it has happened in a relatively controlled manner which also is a hit with our risk management strategies.

What’s Italian for Brexit?

Don’t you just love Italian politics? Radical doesn’t even come close to describing them!

The new Government which is a coalition between Five Star (weren’t they an eighties pop group?) and League, a Party who make Nigel Farage appear to be Brussels biggest fan, is now coming close to being able to Govern after what seems like an eternity of haggling. While it is not quite a case of “the lunatics taking over the asylum”, other potentially radical politicians will be looking on with interest, particularly in Athens and Madrid.

In typical Italian fashion they cannot yet agree on who is radical enough to be Prime Minister.

But when they get that sorted out, they plan to ask the ECB to forgive two hundred and fifty billion euros of debt and then put forward proposals that will allow members to opt out of the single currency.

The recent fall in the value of the Euro has largely been in reaction to the dollar’s rally but should the anti-EU policies of Rome take hold and the threat of Italexit (I knew all along!) become a reality, then the effect of the threat of departure of a Eurozone member, as opposed to the UK who never appeared to be “Full Members”, could be devastating.

What is the next stage for Crypto?

The almost continual wrangling over the value of Bitcoin, the incessant threat that Governments are “looking into” the uses of blockchain and cryptocurrencies and the constant setting up of interest groups and seminars are starting to dilute interest which is vital to the eventual success of something that needs positive publicity.

It is a double-edged sword to say that the whole idea of decentralized exchange of value that moves away from fiat currencies provides freedom and flexibility since it may need “official” acceptance linked to major institution like the IMF or World Bank to see it really blossom.

The next step beckons but it is more of a leap than a step, yet the question remains how will it happen? Revolution or evolution.

I read an article on Social Media the other day in which the writer, without making any suggestion of how it will happen made three obvious points; 1) Bitcoin needs wider acceptance, 2) The security surrounding cryptocurrency use, while understood by those involved, needs to be clearer and 3) pricing needs to be less volatile.

To me that is just a total waste of everyone's time. Highlighting what we all know to be the issues around acceptability doesn’t make them go away it just highlights a premise that the industry doesn’t know how to solve them.

No strategy works 100% of the time!

Over the past few weeks the common currency unbeknown to many traders has saved their capital from being totally eroded!

How has it done that? Well, it has finally started to react to macroeconomic activity and provided some basis for traders to (mostly) make money. I had started to read the tell-tale suggestions on social media that traders could start to see value in cross currency trades in pairs that are not usually featured or traded, for example, AUD/CHF or CAD/JPY. There is of course, nothing wrong with those crosses and there are, or have been, several instances when there are specific reasons that trading them works. For example, when there are conflicting drivers for each leg of the pair and a move gets magnified.

Trading these crosses is not to be a panacea to not making money or a lull in the pair(s) that your strategy is designed to profit from. Patience is a part of anyone's strategy or should be.

That is why there is a smile on the trading face of those who trade the euro as a combination of Mario Draghi and vastly increased liquidity had kept the currency on a tight leash for what had seemed an eternity.

A close to six percent fall for the Euro in a month has created the volatility we desire but it has happened in a relatively controlled manner which also is a hit with our risk management strategies.

What’s Italian for Brexit?

Don’t you just love Italian politics? Radical doesn’t even come close to describing them!

The new Government which is a coalition between Five Star (weren’t they an eighties pop group?) and League, a Party who make Nigel Farage appear to be Brussels biggest fan, is now coming close to being able to Govern after what seems like an eternity of haggling. While it is not quite a case of “the lunatics taking over the asylum”, other potentially radical politicians will be looking on with interest, particularly in Athens and Madrid.

In typical Italian fashion they cannot yet agree on who is radical enough to be Prime Minister.

But when they get that sorted out, they plan to ask the ECB to forgive two hundred and fifty billion euros of debt and then put forward proposals that will allow members to opt out of the single currency.

The recent fall in the value of the Euro has largely been in reaction to the dollar’s rally but should the anti-EU policies of Rome take hold and the threat of Italexit (I knew all along!) become a reality, then the effect of the threat of departure of a Eurozone member, as opposed to the UK who never appeared to be “Full Members”, could be devastating.

What is the next stage for Crypto?

The almost continual wrangling over the value of Bitcoin, the incessant threat that Governments are “looking into” the uses of blockchain and cryptocurrencies and the constant setting up of interest groups and seminars are starting to dilute interest which is vital to the eventual success of something that needs positive publicity.

It is a double-edged sword to say that the whole idea of decentralized exchange of value that moves away from fiat currencies provides freedom and flexibility since it may need “official” acceptance linked to major institution like the IMF or World Bank to see it really blossom.

The next step beckons but it is more of a leap than a step, yet the question remains how will it happen? Revolution or evolution.

I read an article on Social Media the other day in which the writer, without making any suggestion of how it will happen made three obvious points; 1) Bitcoin needs wider acceptance, 2) The security surrounding cryptocurrency use, while understood by those involved, needs to be clearer and 3) pricing needs to be less volatile.

To me that is just a total waste of everyone's time. Highlighting what we all know to be the issues around acceptability doesn’t make them go away it just highlights a premise that the industry doesn’t know how to solve them.

lastest Articles

Market Analysis
EUR/USD seen testing 1.1850 in the short-term – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD fades a spike to 0.7305 – 3-week tops
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: bulls looking for one more run at 1.33
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD should find initial support at 1.1624
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Door open for a test of 132.00 and above
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD still neutral, likely to consolidate near term
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US: Inflationary impact of Chinese tariffs to be modest - TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP futures: up move seen running out of steam
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY positive view unchanged above 110.76 – Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: holding into bullish pressure despite risk flows
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Still targets the 200-day SMA at 131.11
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Riksbank Minutes amongst market movers today
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: Bears waiting near 1.31
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Trade Tensions Return as US Tariffs on China Lift Dollar
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: A test of July’s tops beyond 132.00 gains further traction
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR futures: rising odds for extra gains
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD climbs to fresh 6-week tops, further beyond 1.3100 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY aims for extra gains while above 111.35
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD keeps the tight range above 1.1600 post-ECB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD still expected to test 1.13170 – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB and BoE to be the key event today – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD stays bullish above 1.2997/30
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD fails once again above 1.1600, US PPI eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD neutral although a test of lower levels remains on the cards – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY trades with modest losses, around mid-111.00s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Short-term bias still bullish but momentum eases
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY Technical Analysis: Bulls eager to break above 112.00 figure
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil rises as U.S. sanctions on Iran squeeze supply
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Wisdom: Good traders liquidate when they are wrong, great traders reverse when they are wrong
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling surges on hopes for Brexit deal, yen dips on chipmaker deal
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: sees risk-recovery in Asia, UK earnings in spotlight
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (10.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/CHF Technical Analysis: Swissy trapped in ranges
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling edges up after biggest weekly drop in a month
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: On losing-Pig Insider
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar edges higher on trade tensions, Swedish crown rises after vote
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 10.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Events Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX WEEK AHEAD : Trade Tensions and Strong US Employment Lift Dollar
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY Technical Analysis: Bulls trying to regain control, eyeing a move beyond 100/200-hour SMA
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: systems and tendencies-Eckhardt
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar in check as investors await August jobs report
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 07.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (06.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
EUR/USD Initiates Bullish Series Despite Disappointing Euro-Area Data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: Philip-Fisher-wisdom-trading-quote
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling to float up around 6 percent in a year, but no-deal Brexit would sink it - Reuters poll
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 06.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling edges lower for a fifth day on trade war fears
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Wisdom: The Wise Pig on results
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling plunges vs euro as Brexit fears take centre-stage
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 04.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (03.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
US Dollar within range above 95.00
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 03.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: If you can’t do a thing better than others are doing it, don’t do it at all
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling falls as Brexit headlines sap demand
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Events Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Weekly Results (27.08-01.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
FOREX Week Ahead: US Dollar Mixed on Trade Deal Versus Trade War Balance
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: Bruce Kovner - Quote on risk management
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling set for fifth straight monthly drop on Brexit nerves
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar edges up on latest round of U.S.-China trade tensions
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 31.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (30.08.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
GBP/USD – British pound pauses after sharp gains
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:A trader should look at a chart for what it is, and not for what he want it to be.
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
EUR/USD falls back below 1.1700 handle amid re-emerging Turkish crisis
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling jumps on EU official's Brexit views; dollar near 4-week low
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 30.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:If the losses don't hurt, your financial survival is tenuous
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
WTI looks to $ 69 ahead of EIA data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Yuan eases on dollar demand, snapping a 3-day winning streak
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar little changed as investors await trade news
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (28.08.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
GBP/USD struggling to make new short-term cycle highs, support is 1.2850
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY – Yen trading sideways, as Japanese, U.S data beats expectations
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US stocks continue scaling higher on easing trade fears
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
WTI bounces-back above $ 69 mark, API data in focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:Nothing is worth doing unless it is worth doing right
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar mired near one-month low on trade deal; pound struggles
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 28.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD Price Outlook: Loonie Threatens Breakout on Easing Trade Tensions
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Yuan hits four-week high as China signals support, revives X-factor for fixing
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:Schwager-dont stay wrong
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar softens as Powell disappoints bulls, NAFTA hopes lift Mexican peso
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 27.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Dollar Drops After Powell Stresses Gradual Approach to Rates
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD edges lower toward 1.30 on unabated USD sell-off
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil stages sharp bounce, a day after snapping win streak
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling stuck near 11-month lows vs euro
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:Koner-your position in half
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar holds gains after U.S.-China trade talks, focus shifts to Fed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 24.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (23.08.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/CAD stays in the upper half of its daily range above 1.3050
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:promiscious in search not in trading-Eckhardt
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling falls as Britain steps up planning for no-deal Brexit
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar up as Aussie drops, Fed minutes signal Sept. rate rise coming
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 23.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613