I have been trading seriously for a number of years now. Maybe not in huge figures; but I have been around long enough to know when we get to this point, however different the circumstances maybe this time.
Everyone’s waiting for Obama’s stimulus. Everyone’s hoping that the Government is convincing enough (unless you’re a forex trader, in which case you don’t really care…you just know things will go one way or the other). That’s what it boils down to. Do I as an investor fell confident enough to take the risks necessary in the marketplace? Am I willing to put my money on the line? Obama and his henchmen (Treasury Secretary, The Fed) will be making all kinds of announcements and speeches tomorrow.
How will people react? Will deliver the psychological goods? If they do, then we might finally see some proper risk appetite return to the market. In this case, the yen should fall, along with the US Dollar. Otherwise, well the downward spiral will simply continue…or plunge sharply. The upward move we had last week (i.e. Others gaining on the Dollar) is still very much in the retracement range for the long-term downward move in play for the Currency pairs involved.
Keep a close watch…