Cable Update (GBPUSD)

Bear candle on M30? closing my longs to see where this goes.

The 2 pound coin does

U.S. PPI and BoJ Provide Signal Upside Potential in USD/JPY


If you are wondering why the Fed did not remove the pledge to keep interest rates at an extremely low level for an "extended period" of time yesterday, just take a look at this morning's producer price figures. Inflationary pressures in the U.S. are extremely modest and the lack of inflation gives the central bank the flexibility to leave monetary policy easy for longer than otherwise. The Fed may not have had the PPI report in their hand prior to their meeting, but they would have seen the import price report which had already reported softer price pressures. Producer prices fell 0.6 percent in the month of February due primarily to a big drop in energy costs. Excluding food and energy, producer prices actually rose 0.1 percent. However, with oil prices increasing materially since then, the decline in PPI should be temporary. Therefore we still believe that at the end of the day, the Fed is closer to actually tightening monetary policy than its European counterparts. Furthermore, despite the hot employment numbers from the U.K. this morning, investors feel there is greater risk in putting their money in Europe than in the U.S. at this time. For this reason we are still bullish dollars, particularly against the Yen.

Another Reason Why USD/JPY Could Rise: Bank of Japan Increases Stimulus
Meanwhile, the big event overnight was the Bank of Japan announcement. The central bank doubled the size of their special lending program to 20 trillion yen, making them effectively the most dovish G7 central bank. Interest rates were left unchanged at 0.1 percent, but that did not stop the Japanese Yen from trading lower against all of the major currencies. Given that the central bank upgraded their economic outlook for the first time in 8 months earlier this week, their move was clearly an attempt to pacify government officials who have been on their backs to use monetary policy to jumpstart inflation. Not all members wanted to bend over backwards for the politicians however - for the first time since last October, Noda and Suda dissented. In a statement released after the monetary policy meeting, the BoJ said "Japan's economy is picking up, mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand." Shirakawa also said ""Showing the BOJ's clear stance against deflation will help ensure an improvement in the economy and prices." The question now is whether the BoJ's act will be effective in bolstering prices. The BoJ has increased the money supply, but this is not the real problem - the main issue is that Japanese consumers are not willing to take money out of their wallets and spend. Although the Japanese Yen did not have a big reaction because the announcement was not much of a surprise, it provides an additional reason why the Japanese Yen could extend its losses against the U.S. dollar.

mmh, getting a short signal right now... but i dont feel good about it

man i did miss the whole thing whats going on room

are u perma long

no, of course not...

well... try looking at 1 min chart for entree and SL

i have my setup i use charts without time and based on prices only...

i just mean, the market environement doesnt feel like shorting now... probably wont take the trade and wait for another entry/signal... i will see...

Hello Mathias,

Do you use P&F charts?
Would you mind pasting some for example, and how do you trade them?

ta
ams

for examble, a trade from monday... cable retreated from its highs, i got in at the last x-column and added another position later.

http://blog.cerebro-capital.com/wp-c...-15_090347.png

http://blog.cerebro-capital.com/wp-c...-17_153901.png

i wanted to short at around 5330 but as i said before, didnt think it will work out. i try to get the crosses of the moving averages u see above

Gu will touch the LTL and then bounce back continue bullish. On higher time(daily/weekly) frame still in bearish...

Thanks for posting the charts, and explaining!
Any particular reason to go with P&F then usual candlesticks ?
Reason to ask is, you must have learned it from somewhere as no one uses them anymore.


ta
ams

Dollar seems to become bullish here with both fibre and cable heading south, so I may jump the bear fence shortly.

mmh, i like that they dont need time. you get a good and clear picture of support and resistance. and i found a strategy thats suits myself (intraday and not many trades).

but you are right, its old fashioned and i stumbled upon it a few years ago, first used it for stocks and i'm trading it within forex for 2 years and simply feel good about it

Good to see you too bro...


well, that 1.5340 is probably a tough nut to crack...she wasn't able to clear that barrier....risk is for price heading back down towards 1.5150 now

Remains to be seen how far down from here will the selling pressure be able to drive her down....

I'm thinking quite the opposite. I still have my short open, but looking to do a reverse. Haven't worked out where that might be yet.

Then again, I did that yesterday, got out too early and burnt my fingers twice. Decisions, decisions, decisions.

It's all about having confidence in your tools and strategy. If it works for you, why change it.