In the midst of expectations of the EU raising rates as early as next month, the Federal Reserve has begun hinting at a tightening of it's own economic policy.
It's hard to say what the new differential will be, so I'm flat the EURUSD for now. I liquidated all my positions. I'll continue building positions in other pairs for the time being, and I have a close eye on the gold market.
As the US continues to recover, the gold bull will be slaughtered. Now that the Fed is mentioning rates, the markets could get very interesting.
In my next post I'll explain my next trade I see being a big winner in FX, and of course I'll be testing the pressure in the gold bubble.
1 comment:
Hey Scot,
I think the ECB will raise the rate once, however it is diffcult to argue that a series of rate hikes will follow given the current market environment.
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