Weekend Radar

• kevinmhughes
• December 18th, 2009

Here are some situations I will be watching this weekend.  I believe if these events/situations get stronger (whether good or bad) it will have a impact on the markets which will cause some nice movements.  The links will take you to a website with some information (and probably a good place to check periodically this weekend)

- OBVIOUSLY the Iran/Iraq Oil Well cat fight.  Oil prices today have not moved drastically, but if this situation turns ugly, I believe oil will shoot up in price.  Which will cause the $USDCAD to fall, the $NZDUSD & $AUDUSD to climb.  And the argument could be made that $GC_F will rise then $SI_F will follow suit.

- The financial stability of the $EUR zone/region & the ‘new’ write downs.

- Greece – because they could possibly be the demise of $EUR

- Japan in general – you never know what those guys are going to do or say.  Their rates are important because of the carry trade and where some of the US debt is placed, which will quintessentially affect the $USDJPY pair and the US’ debt repayment.

- China & anything that comes out of their mouth.  China is like the red headed step child that is getting praised for their actions but is really hiding something (IMO).  China does have a profound impact on the commodity world.

- The US Government and what ever comes out of Washington, D.C.  I don’t believe they think before they get in front of a camera (that’s NOT a political crack on Obama, its geared towards Washington).

I am obviously watching for some currency fluctuations as a result of some of the news that ‘may’ happen this weekend.  With next week being the week of Christmas, a lot of traders will not be at their computers or the pits which thins out liquidity.  If some of the (above) situations happen to get hairy/ugly, it will probably cause some nice volatility (the less speculators, the higher volatility.

Kevin Hughes is the President of K.M. Hughes & Associates, Inc which is a currency trading firm in Charlotte, NC.  If you would like to find out more please visit www.hughesincorporaetd.com

Tickers: AUDUSD, GC_F, NZDUSD, SI_F, USDCAD, USDJPY

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