The dollar seems to be tied exactly to short term rates - when the two years rally, the dollar drops. When the 2 years get hammered the dollar goes up.
I've been looking for a spot to go long the Swiss Franc as their economy is smoking and their central bank doesn't fool around w/that kind of thing. They like their currency rock hard. However, all seems to be tied to the Fed right now. Being long the SF would essentially just be adding to my long position in Dec 07 Eurodollars.
Interest rate markets have just become supertough to trade the past few years - ever since the Fed started telegraphing exactly what they were doing. I'd like the Fed to go back to its old opaque ways and let the market do some thinking for itself.
Still long Dec 07 eurodollars for a multi-month trade and adding to the postion once a week or so. Last week was disheartening as they got slammed for no apparent reason. However, Friday was nice as they rallied (I assume the "excuse" for the rally was a housing start #). The best part is that I was able to add to my position at a real nice price. Just a very choppy market. I guess I'm lucky for the moment since while I am one to follow the moves of the market quite closely, I don't give a whole of attention or worry to the daily moves.
I've been looking for a spot to go long the Swiss Franc as their economy is smoking and their central bank doesn't fool around w/that kind of thing. They like their currency rock hard. However, all seems to be tied to the Fed right now. Being long the SF would essentially just be adding to my long position in Dec 07 Eurodollars.
Interest rate markets have just become supertough to trade the past few years - ever since the Fed started telegraphing exactly what they were doing. I'd like the Fed to go back to its old opaque ways and let the market do some thinking for itself.
Still long Dec 07 eurodollars for a multi-month trade and adding to the postion once a week or so. Last week was disheartening as they got slammed for no apparent reason. However, Friday was nice as they rallied (I assume the "excuse" for the rally was a housing start #). The best part is that I was able to add to my position at a real nice price. Just a very choppy market. I guess I'm lucky for the moment since while I am one to follow the moves of the market quite closely, I don't give a whole of attention or worry to the daily moves.
