Author: Kristian Fiskerstrand

In the process of working back yesterday's loss I made a bet on the EURNOK about ECBs statement today. I shorted 50,000 EUR at 7.7549 and repurchased it at 7.7365 giving a 184 pip (0.24%) profit.

(30 pip spread between bid/ask price from broker)

The EURNOK is at the moment relatively stationary in the 7.7548 to 7.7726 range, giving a spread of 178 pips, or a 0.23% move from lower to upper bounds.

A nice trading object, even after accounting for the 30 pip bid/ask spread. It will be interesting to see if that continues after the European Central Bank's Trichet announces its interest rate decision at 1245 UTC and the following press conference at 1330 UTC. The rates themselves are expected to stay at 4 percent, but the rhetoric in the press conference can have some impact on the development of the euro.

Ok, so I made some rather large mistakes on the EURUSD cross while FX(forex/currency)-trading today. A small technical chart of the EURUSD cross is shown below. I ate up the profit made the past couple of days and am now down as compared to a week ago.. shit happens, time to go back to the strategical drawing board and get back on the horse tomorrow.

(click for larger image)

So.. Some explainations: The EUR appreciation of 109.5 pips (0.75%) seen was a result of a chinese official stating that China should diversify its liquidity reserves into stronger currencies as the USD has weakened steadily. This obviously affected the currency markets on several levels, and immediately made the EUR jump. As we can see over the next couple of hours traders have difficulty deciding how to react to this, and at the time of writing most are starting to look back at the levels before the comments were made.