Thursday, May 20, 2010

A Foreign Exchange (FX) trading war about to erupt between Central Banks and Hedge Funds

So stupid central banks like the ECB with that dreadful German goverment will try and wage a war against the so called 'speculators', first shots fired was the banning of the naked short selling/CDS. Next will be the FX market/s on central bank intervention. Will it work? Who will win? Well that is obvious. No it won't work and the market always wins. The ECB will need to print to finance it's 'buying' operation. So either way the market will hedge on something, either currency or commodities. So watch oil now and other vulnerable currencies.

The central banks and goverments are acting extremely irrational, thus expect market volatility

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