Traders & Investors Club

Since last we met, the US Dollar has broken out to the upside of the trading range within which it had been languishing for the past six months. Of course, the Eurozone crisis is positive for the Dollar and Kevin does not discount the possibility that we could see Euro/Dollar parity over the long term.

But surely the Dollar is a basket case? Everybody knows that. Or, they think that they do. Whether we like it or not, the ultimate safe haven in times of turmoil is US treasuries and the transition of market sentiment from high risk to low risk is now well underway. The markets are not there to make sense; they do what do. It is our job as a traders to act upon the very clear signals that the market provides for us.

Closer to home, the FTSE has kissed goodbye to 6000 for a very long time indeed. Kevin is short the gold and copper markets and thinks that long US dollar/short Japenese yen will be one of the big trades for the months ahead.

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