The British pound exhibited a firmer tone following the announcement by the Bank of England that it would expand its quantitative easing program by £25B, less than the market consensus of a £50B increase. That fundamental news, in combination with prior visual support, moving averages on multiple time frames, a trendline, and a Fibonacci retracement level, contributed to a trade plan for buying the GBP/USD currency pair soon after the U.S. equity market open. The long trade on cable yielded up to 70 pips [depending on exit strategy].

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Selling of stocks and buying of dollars had been the prevalent theme during the first three trading days of the week. After a one-day hiatus fueled by a better than expected headline figure from yesterday’s U.S. GDP report, risk aversion returned on Friday. Short trade setups on the EUR/USD currency pair produced profits between 80 to 120 pips [depending on entry and exit strategies].

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

The U.S. dollar extended yesterday’s gains against the euro during today’s London and New York sessions. One opportunity to short the EUR/USD at a convergence of multiple levels of likely resistance, came together during the 30 minutes leading up to the U.S. equity market open. The dollar’s momentum increased following the release of a worse than expected October consumer confidence index from the Conference Board. The short trade delivered a profit of up to 80 pips [depending on exit strategy].

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

The U.S. dollar rebounded during today’s New York session after hitting a 14-month low earlier in the day. A short trade from the top of an intra-day channel on the EUR/USD currency pair produced between 85 to 130 pips [depending on exit strategy].

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

A summary of today’s New York session? Let’s put it this way: The EUR/USD currency pair rose a net 15 pips over the course of four hours. Although profitable trades were attainable, they were also short-lived.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

The U.S. dollar had been mostly range-bound through today’s Asian and London sessions. At the U.S. equity market open, the major stock indexes showed red, and with it came USD strength. The EUR/USD currency pair offered a classic second chance entry after a range breakout move. A 60-pip profit was the reward for traders who let that trade run to the London close, while the cable produced a move roughly double that size.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

After a brief recovery during the early portion of today’s Asian session, the U.S. dollar was subject to selling pressure from London open to London close. A long trade on the EUR/USD currency pair yielded between 40 to 60 pips [depending on exit strategy] during the New York session.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

The headline figure from the October Empire State Manufacturing Survey destroyed the consensus forecast, adding to the Japanese yen’s downward momentum. Following the news release, a scalp trade on the EUR/JPY currency pair yielded at least 55 pips [depending on exit strategy]. An hour after the New York open, the U.S. dollar resumed its recent soft tone, lifting the EUR/USD pair by some 90 pips.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Sterling was the feature currency during today’s New York session. Movement on the pound pairs was led by a EUR/GBP bounce at key support, then further fueled by dovish comments from BOE’s Fisher. In contrast, when the dust settled following today’s releases of JP Morgan earnings and U.S. retail sales, traders found that virtually nothing had changed for the U.S. dollar.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

The U.S. dollar and British pound, two currencies which have been rather sickly of late, showed a somewhat healthier glow during today’s New York session.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst