The latest strong interest rate cut in the USD is creating new different interests in pairs.
Below is a new swap table provided by one of MT4 brokers. It should be more or less equivalent to other brokers
Looking at the table, I see that longing GU is becoming more interesting than longing UJ!
Here some ideas about the main currencies pairs from 'swap' point of view:
EU: It is not any more penalizing to long it for a long term as swap is now positive and expected to raise in March. Fed will probably cut 50 to 75 point in March and April 2008. This will encourage bulls to long more on dips.
GU: Falling more and more. Bank of England continues to support the pound. This keeps the pound in good trading levels against the dollar. If Bank of England acts like the Fed in cutting rates at the moment the pound would be trading at levels of 1.8xxx against the dollar.
Keep in mind that in UK will continue with the interest rates politic to cut (Slowly) the interest rates the pound will continue to lose against the major currencies.
Still, longing GU, GC and GJ on dips is very interesting on the swap side, and this is probably giving also support for the falling GBP, giving a nice up push to these pairs every time they take deep move down.
UJ: Longing this pair is less and less interesting. Traders will prefer better swap currencies. This will give room to UJ to get lower and maybe soon test 100 level.
UCAD: A downtrend supported by oil higher and higher prices. It is neutral from swap view.
UCHF: A downtrend supported by Gold rising. Longing the pair is slightly favored by swap.
AU: This currency is backed by a very strong economy, a very high interest rate that will possibly have another hike soon, and longing it with AJ is very attractive... everything to continue a strong uptrend that will probably lead to parity with the USD. It seems to be the best 'investment' currency to buy on dips and hold.
Below is a new swap table provided by one of MT4 brokers. It should be more or less equivalent to other brokers
Attached Image
Looking at the table, I see that longing GU is becoming more interesting than longing UJ!
Here some ideas about the main currencies pairs from 'swap' point of view:
EU: It is not any more penalizing to long it for a long term as swap is now positive and expected to raise in March. Fed will probably cut 50 to 75 point in March and April 2008. This will encourage bulls to long more on dips.
GU: Falling more and more. Bank of England continues to support the pound. This keeps the pound in good trading levels against the dollar. If Bank of England acts like the Fed in cutting rates at the moment the pound would be trading at levels of 1.8xxx against the dollar.
Keep in mind that in UK will continue with the interest rates politic to cut (Slowly) the interest rates the pound will continue to lose against the major currencies.
Still, longing GU, GC and GJ on dips is very interesting on the swap side, and this is probably giving also support for the falling GBP, giving a nice up push to these pairs every time they take deep move down.
UJ: Longing this pair is less and less interesting. Traders will prefer better swap currencies. This will give room to UJ to get lower and maybe soon test 100 level.
UCAD: A downtrend supported by oil higher and higher prices. It is neutral from swap view.
UCHF: A downtrend supported by Gold rising. Longing the pair is slightly favored by swap.
AU: This currency is backed by a very strong economy, a very high interest rate that will possibly have another hike soon, and longing it with AJ is very attractive... everything to continue a strong uptrend that will probably lead to parity with the USD. It seems to be the best 'investment' currency to buy on dips and hold.