I have had a look at all of the fundamental and technical analysis on this and other forums and even the ‘experts’ don’t seem to have an answer for what happened to ???/USD or USD/??? i.e. anything USD other than questioning whether or not this is the beginning of THE correction everyone has been talking about.
On Friday - generally between 08h00 and 12h00 NY time - the USD ‘spiked’ weaker - and at roughly the same time Gold, Silver, and Oil climbed, what seemed to be proportionately, higher - and Stocks worldwide fell substantially throughout the day.
Two things not mentioned on the forex forums that happened of Friday were:
- “Quadruple Witching Expirations” on Friday (expiration of stock index futures and options and individual stock futures and options, which occurs once a quarter)
AND
- China raised interest rates on Friday
GLOBAL MARKETS-Credit worries, weak earnings hit markets | News | Market News | Reuters
For what it’s worth: the last time China raised interest rates the prices of precious metals fell by a heap (I know - I lost big time - but this is covered in a very old thread of mine somewhere on this website). As a matter of fact Gold has not even reached the price that it was at when China hiked rates last time - that was about around April / May if I’m not mistaken. True to form - China ‘sneaked’ in their rate hike - just like it happened last time. What this means is that China is trying to ‘cool’ their ‘hot’ economy and a ‘cooler’ economy means less production - less production means less demand for Gold (at least that’s the way I interpret it from last time).
Anyway - any thoughts or comments or insight - from anyone - before the start of the new week (it’s the movements of the DAX, Dow, S&P, and Nasdaq I’m most interested in actually)?
Regards,
Dale.
