Posted on December 17, 2008 at 14:33 in Hedging by Ron SchellingNo Comments »

WOW, what a move again today.

By seeing EUR/USD 1.3975 yesterday, you can wait for a test of EUR/USD 1.4000

I can’t remember seeing 400 pips in the EUR/USD since I started trading in 1983. Looking at 1 month interest rates we see USD around 0.6 % and the Yen at 0.7%

So what the development with those two low interest currencies?

Looking at the chart of the USD/JPY we see a steady course down.

The hedge indicator turned down at the beginning of September around 108 Yen and quickly went down to over 75% short for corporate hedging (see yesterday’s story) and it looks like it will take a long way before the hedge indicator get’s back to above zero as today’s action turned all indicators heading south again.

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