WAR

WAR

War, children, it's just a shot away
It's just a shot away (hey)...Song by:  Rolling Stones, "Gimme Shelter"

 

It all happens in a day.

China raised interest rate, finally, as I continued mentioning, that either they up the Yuan, or they raise interest rates. I am always right.

Tim Geithner of U.S. tried to slow the USD drop, please note just "slow" and not stop. It is a "managed drop" folks, by repeating that vague statement that strong USD is still in the US's interest. How sarcastic!

Europe of course will not be silent after the above two was in the lime-light. They tried to steal the show by implying a gloomy outlook for Europe. Yup, the Euro has been too high for their liking and they purely wish to do something about it by talking it down a shade.

Australia had a "hawkish" RBA minute and AUD/USD bournced to as high as 0.9945 and unfortunately could not resist the broad USD rise and long position unwinding caused it drop to the low 0.9700's where it appeared meeting strong support, at least at this time.

Then of course, we also has a risk-on day as share results are not looking flashy with Bank of America and Apple. This also tends to push USD higher.

 

I did warn after Friday close that this week will be a reversal week. I am right again, and I did 3 times warning of a GBP drop-----sometimes, really feeling a bit lonely up there........Good night!

 

Victor Ho