The March interest rate decision meeting from the Federal Reserve was dominated by the fear of unemployment growing, housing slumping, consumer's not consuming, and business and commercial markets going into default. In all, nothing new there then, but it was enough to send Wall Street scampering from stocks. The moves however were not into Treasuries and the dollar it seems, they were not bought in-line with equities dropping; so maybe the smart thinkers moved the smart money to cash.
There really is nothing new to report here said Trade Team members at TheLFB-Forex.com, We see nothing different to the recent messages, outside of the admission that the printing press was getting a turbo charger fitted. Forex related moves away from the major pairs are buying into the flight to safety story, but in reality it is a poor outlook if the Usd is as good as it gets in regard to safety. No wonder the forex pairs are going from famine to feast, with one week up, and one week down, in-line with bear market mechanics that are negating anything positive.
The reaction to the Minutes may be quickly forgotten as trade desks look to the long weekend, and the book balancing required as the markets run into an early Thursday close. The yen was the only cross pair to test the low of the session, and that did not last long, and so it seems that Asian trade will walk the path of least resistance.
We have monitored an Asian drift trade for years, and over the last six months saw a move away from it« Trade Team members said. That may be changing, because over the last three weeks we have seen more price action and momentum in Asian trade than the U.S. Heads up forex traders, a pattern is forming here that is showing that it is hard to stop the initial Asian market moves once they get going, and whether a pair opens above or below the neutral pivot point seems to determine which way itr then travels. We are alerting members to it, the pattern is in play.