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Dollar Rebounds - Central Banks Intervene - Happy Holidays!
Over the past month the US Dollar has pulled the pendulum back from the brink of the breaking point. November 9 showed the British Sterling peaking at almost 2.12 to the Dollar. Two days earlier the Canadian Loonie put the dollar at 0.90 cents.
That’s just too much loss of value for the worlds default currency too fast. As we head into the end of 2007 and the week between Christmas and New Years the US Dollar has regained some of it’s luster - back below 2.00 for the Pound (1.98) and back at Parity with the Canadian Loonie.
Foreign Exchange Markets Never Go On Holiday
What About Traders?
It’s hard to imagine that the worlds banks and traders can continue to ignore their large and long term positions during low volume Holiday trading sessions. In the US you have 24 hour mini-markets open 7×24x365 to sell milk, beer, and cigarettes.
It’s Different This Time!
The Central Banks of the world on December 12 determined that they must work together to avoid a global financial malfunction. Since that announcement you can see on the charts what some people might call intervention and support of the US Dollar.
The Big Question is:
Will there be a major move during the “low volume” “empty seats” Holiday week?
Pound-Yen Paused for Major Move?
(Click to Enlarge Chart)
Jerry Furst broadcasts weekly on FX Street with “1stonForex the Week Ahead” and facilitates and presents his own live educational workshops. Jerry is an active trader, educator, and Founder of Investors Education Network (IEN), he is also a mentor and trading coach to select clients. Click Here for a Free Survey and 30 Minute Consultation