Operators' intentions read by 
The expected moves happend during the ECB rate decision and the press conference time.The expected drop from the gap time happened just about 20 min earlier.
EURO and GBP are expected to firm up from the dropped levels.It is again an expectations based on the forecast model and traders are advised to use their analysis to take trading decisions.
Those interested to trade against the expectations can also do so -any way trading decisions are yours.
Market means swings.There will be up and down moves where we enter = either short or long is the ability to trade with success.Then trading with in the means is important - I mean over trading should be avoided.
Regards
Dr.Sivaraman
Doc,
What is the forcast for USD/JPY?
Do you feel a low has been made for the time being at least?
It rallied from just above this region before to 1.48 in a matter of days. If you expect a rally from when?
Rgds,
Greg
Dear Mike
USD/YEN is expected to firm up along with EURO and GBP
Regards
Dr.Sivaraman
Dear Greg
All hype created for the monthly trend reversal time.Normally from second week of the month they do the trending move after a false move for that week beginning
I am expecting them to firm up in US session and then open with upward gap tomorrow and quickly rise for week end.They are known to create the market sentiments and act against the traders.
Regards
Dr.Sivaraman
DOc,
Don’t you think all of the de-leveraging that is going on is the root cause of this USD strength?
After this bill is passed, wouldn’t USD demand go up?
Dear mike
To create artificial USD demand the players are doing this.You know well the Market sentiments are short lived.When all traders try to buy USD who is there to sell to them?Tomorrow week end we will know how they trapped the traders by creating sentiments every time.
Regards
Dr.Sivaraman
Doc, this new trend that developed in the past 2 months is a particularly short lived one. One giant massive false move I believe.
Now I predict a reversal. (So you might start calling for a steep USD rise)
Why:
Because the bailout will be accepted and US is going to nicely print some more money for the banks. By enlarging the national debt they will create a wave of inflation, that will make eur:usd 1:2 within a year.
Why?
They will be effectively reducing their national debt (which which is in USD) in value for more than 20%.
I am afraid China is not going to like this. They have all them US money now and if US decides to devaluate that money, it’s like stealing from them.
There is a 1 billion people army waiting to invade.
We are on the brink of WW3 here.
Make no mistake.
As recently the USD money mrkt interest rates are at much higher lvls wht the FED wants to see (because of the credit squeeze borrowers overpay the mkt to be able to fund themselves) the classical carry tade doesnot work anymore. Actually the opposite happening.
For example the 1 mnth interest rate in USD, GBP, EUR are the same regardless the CB-s interestrates (around 4-5,5%).
Therefore USD borowers started to buy USD agst other ccies as it gets cheaper n more importantly easier to borrow these ccies then the USD.
As long as this credit situation prevail the USD stay strong.
Though the sentiment can change quickly. Today the O/N USD was around 1% but noone dares to fund itself for O/N but longer which is at 4,5%.
So i think this is the explanation why the USD gets stronger n stronger apart of the already known delevereging n the absence of the bankrupt-descaled US “Invetment” Banks.
Hello MrT.
Interestinly many still sees the USD as safe heaven n when something goes wrong they jump into the US treasuries.
The most schizofrenic to me is when the US itself is in trouble, people r still buying more n more US treasuries then ever n even with a much lower yield then before.
So the US because of its image can afford to decrease interest rates when normaly they shd increase to be able to borrow (a bluff wht the whole world takes).
So this old reflex can save the US n the USD as long as China or Russia will not evolve their financial system towards free mkt. Then we will trade Rbl/yuan.