[B]My picks:[/B] Buy AUD/USD and USD/JPY. Be Long Carry Trade.
[B]Expertise:[/B] Global Macro
[B]Average Time Frame of Trades:[/B] 1 week
Yesterday, stocks, commodities and high yielding currencies had substantial rallies on speculation the worst of this global recession cycle is over. The move was triggered by a sudden change in investor’s sentiment towards more risk taking and gained momentum after yesterday’s Fed Rate decision. “Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower”, the Fed said. Having said that, even though I expect a pullback on riskier assets in the long term, in the short-term it’s difficult to ignore the upward momentum on carry trade high yielding currencies.