FED cuts 75 just now!!!

As if trading the news isn't challenging enough. 10:30 GMT is 2:30 am local for me (I think) which has me in deep slumber. Please don't tell me that I now need to scan sports forums 24/7 for trading rumors.

Also a good reason to double check your positions ... and stop losses, before turning in for the night. In any timezone. :surprised

avoid expecting an ecb rate cut, today fed decition gives more arguments to Trichet not to cut.

try to think deeper into the subject. they are eating usa financial system.
basically usa has lifted them, just heard some minutes ago a dangerous commentary from an ECB member.

He basically said, they are ready to avoid a second round of prices increases.
what he did not say but was meant, "inflation Fed cut are going to cause".

Beware, there are strong forces behind curtains to put euro as the new world prefered currency, when that will happen??? when an usd minicrash happens.

usd risks are increasing considerably, beware!!!!.

--------------------------------------------------------------------------------------------
BRUSSELS, Belgium (AP) -- The EU's economy chief on Tuesday blamed the United States' huge trade deficit for plunging shares on world stock exchanges, saying Europe was in a very different state and could weather the storm despite slowing growth.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said he would keep pushing EU governments to make economic and labor market reforms that would boost growth and jobs.
"It's obvious that we are living in an uncertain period," he told reporters after EU finance ministers met in Brussels.
Fears of a U.S. recession -- not a larger global slowdown -- were behind falling equity markets, Almunia said, stressing that Europe was not facing similar problems.
"We are well prepared to weather this situation even if we cannot ignore the risks of our growth being affected by this turmoil," he added.
--------------------------------------------------------------------------------------------
(almunia was a hate message but he is in his total right to do it, usa has been behaving like the mad credit card irresponsable kid all these years. ecb reaction can be painful to usa.)

Depends on what you're carrying. I've been long NZD/USD in an amount equal to my account equity for a while. The differential just increased on that. It doesn't make a difference in this position though, because I get the NZD-USD spread on the position, plus the interest on my USD balance, so my positive carry is always just equal to the NZD rate.

Traders who were using the USD as the positive side of the carry (why??) would get burned though.

They never inform us when they announce emergency rate cuts like this. Did they inform us in 1987? Did they keep the public updated on the LTCM debacle?

They need to hold onto their surprise factor to shock the markets into submission - comparing the dynamics of the financial markets today to that of the era of the Fed's charter leads me to believe this "surprise factor" is all they have left in real sway.

Never could understand the big deal with using higher leverage. Just trade smaller, and risk the same value per pip. Higher leverage in most cases means smaller margin requirements for the amount you are trading. It's when people use high leverage to overtrade, pushing up the amount at risk, and getting greedy is when it creates a problem. As with anything, it's how you manage your money and this can still be done using higher leverage properly.

Indeed. Why people wanna chase after brokers offering insane 500:1 leverage is absolute suicide.

I guess this is a lesson to everyone WHY YOU SHOULD ALWAYS USE STOPS.

Well in many cases it's because they getting greedy or lack of proper funds. There are a few exceptions and some strategies have the ability to take advantage of using higher leverage.

500:1 is just great, i pay 1/5th the cost of margin to open a trade, im paying just 200$ for a 1000$ 1lot trade haha. But its suicidal because too many people don't use stoploss.

I guess the bernanke wants people to stop shorting GU now hehehe

Buy Metals!!!!!!!!!!!!!!

But I earn 200 pips in buying gbp/jpy
hahaha

maybe more 0,25% next meeting


Best Regards,
Marcelo Marques

Trichet is behaving like a mad kid, could you watch his facial expressions in last press?

tha man really angry.

EURZone isnt good too... the economists say that will have cut to in a EURZone and about GBP... was 9-0 to cut..., NZD, nothing.., AUD nothing...so, if all guy cut, where going all markets?


Best Regards,
Marcelo Marques

I keep hearing "Australia is less affected by a U.S. recession". Let's see what happens when carry traders (the BIG ones, banks) with the USD now squeezing their carry margins. Gotta pay the money market guaranteed return checking accounts some how, eh?

Somebody, please explain.

I do not understand why currency pairs like USD/JPY and AUD/JPY are shooting so higher, in spite of the fact that we all know the Fed will soon cut the rate which I think will put some downward pressure on USD. I am confused.

lol, the market is a circus, just reading today big banks now are encouraging their clients to buy USD and dump euros, UBS and AMRO were the first ones.
Bank of America has said they now support the view of a stronger dollar after the rate cuts would make usa equities more atractive.

also the trader sentiment has turned bullish bullish on USD.
bellieve, really surprised, never seen the ods too high support the dollar and against the euro. when the interests are for the euro.

WTH is going on!!!!!.

Perhaps they assume that the USD will rebound, which is reasonable. Perhaps they are total crooks and want foolish investors to prop up their bad investments. Hard to say lol. If China starts dumping the trillions in USD reserves it has... not a analyst in the world can stop the USD plummet. Bernake maybe, but no bank advisors lol.