Friday 18 November 2011

We sold EURUSD

So gold has sold through that strongly resisted 1755 level much to our surprise. And it did so with some style.
 
The position has recovered slightly as markets have strengthened slightly today and late yesterday. We knew there would be some pain before the gain. In fact, losing more money is bizarrely exactly what we want... Deteriorating markets signal more and more to the ECB, the Fed and the BoE of the urgency of the task at hand, pushing them towards printing.
 
However, in order to avoid a little of this short term pain we sold a small amount of EURUSD to hedge against an appreciating dollar (as things deteriorate Treasuries are bought, Dollars are bought).
This also gives some more nice exposure to the ECB press.
 
Oh and the Yen trade has finally closed netting around 20 pts. It was worth the wait!
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