Forex: Fed's QE3 Path Presents Considerable USD/JPY and AUD/USD Trade Potential
There are two primary themes that can redefine direction and momentum for the entire FX and capital market: risk appetite trends and stimulus speculation. Awaiting a meaningful reversal or upgrade on sentiment has proven a long and frustrating weight. In fact, the normal correlations founded through strong risk drives show the theme is disengaged. The US dollar's impressive climb over the past weeks and months on the other hand shows a considerable debate on the eventual change in the Fed's influential QE3 program. That said, if Fed Chairman Bernanke and/or the FOMC minutes don't confirm this speculation; bulls may find themselves exposed. We discuss this fundamental theme and the trade opportunities under different scenarios in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.