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  • Capital flight has driven the US dollar higher. On a day when President Obama signed the Economic Stimulus Package into law, the banking turmoil in Europe and the resignation of Japan’s Finance Minister has turned investors away from other major currencies. Even though the greenback is yielding next to nothing, investors are willing to park their money with the US government as long as they keep it safe. The lack of negative game changing news from the US has been very positive for the US dollar. The greenback and gold prices have been moving in tandem since January 14th. This unusual correlation is actually sending a strong message to currency traders.

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TRADE IDEAS

  • Trades to Watch
  • Trades in Progress
currency trade idea
USD/JPY
Medium term



Buy Buy at 103.0500
Stop at 102.75
Target at 103.9
currency trade idea
USD/CAD
Medium term
Opened 5/20/2013
Buy Long from 1.0225
Stop at 1.0195
Target at 1.0285
GBP/JPY
Medium term
Opened 5/16/2013
Sell Short from 156.6000
Stop at 156.6
Target at 155.1
These are hypothetical trades and should not be relied upon as a substitute for independent research.

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