Thursday, June 20, 2013

Forex: Fed Rallies the Dollar, But True Test is S&P 500 Below 1,600 $USDJPY $XAUUSD $SPY $USDX $EURUSD $GBPUSD $AUDUSD

Source: Forex News by DailyFx
Date: 6/19/2013
by: John Kicklighter

Video Description
As many investors feared, the Federal Reserve confirmed its intention to rein in its support of the market - the 'Taper'. Though the central bank didn't 'pump the breaks' just yet, investors that have used excessive leverage or exposed themselves to risky assets to draw a meaningful rate of return could sense the risk ahead in such exposed positions. In the wake of the news, the dollar posted its biggest rally in 19 months for short-term breaks in pairs like EURUSD, GBPUSD and AUDUSD.

Despite these moves, however, the scales of sentiment haven't permanently shifted. In today's video, we discuss what it would take to escalate the sense of risk aversion, what the advance for USDJPY and yen crosses means and why the 1,600 figure for S&P 500 is critical. Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts. (http://www.fxcm.com/products/overview/)

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