Oh what a night!

• kevinmhughes
• January 26th, 2010

It’s been for the most part a wild ride in the currency markets since Asia.  We’ve seen the $USDX strengthen nearly 100 pips on against the $EUR & $GBP ($EURUSD $GBPUSD) as the commodity countries: $CAD $NZD $AUD ($USDCAD $AUDUSD $NZDUSD).

There were several news releases that had some major impact on the currency markets and some of them were big!  The IFO Expectations ($EUR) which came in at 100.6 vs. the expected 99.1; for the U.K. it was their GDP numbers that knocked the cable off track coming in at .10% QoQ vs. the forecasted .40% : GDP YoY came in at -3.20% vs. the forecast of -3.00%.  Both of the U.K. numbers were worse than expected.  Sending the cable to essentially the bottom of the barrel (or to the numbers of the Presidents approval rating).

The US has some economic releases today that should move the market but I really don’t anticipate any major move until either London and/or after the FOMC rate decision tomorrow.  I do see $USDX strength into the NY open and into the Asian trading session tonight.  Below is a 30 min chart of the $EURUSD with the levels I’ll be watching as well as the wedge it’s forming (or bear flag, regardless its a consolidation):

Here are some links I’ve enjoyed through out the night:

When all else fails, blame the person standing next to you

If APPLE and GOOGLE were to marry, who would wear the pants in the relationship?

AND THE WINNER IS……. ME!

**This to me was just odd**

I thought they were perfect???

I have no clue why I keep coming back to this site, but I do, it has some good stuff from time to time

Dear Asia, the USD would like to thank you for the help you gave it while we were sleeping.  Sincerely, A trader who needs a new alarm clock

Have a great trading day everyone!  Watch those stops!

Kevin M. Hughes is the President/Head Trader at K.M. Hughes & Associates, Inc. which is a managed account service for currency trading based in Charlotte, NC.  If you would like more information on Kevin or the services he provides, please visit: www.hughesincorporated.com

Tickers: $EURUSD, $USD, $USDX, GBPUSD

blog comments powered by Disqus