PipStop

Since I shared some thoughts that Pierre Charlebois has sent out yesterday, this morning I thought I'd share a note that Trading Post Trading Coach Harold Fretheim shared with the Trading Coach team yesterday.

And the more I read comments like this from the Trading Coaches, the more I think we should create a blog that they can all contribute to when they have thoughts.

Harold always seems to have great insight and information to share.

We are now facing events that could shift the fundamental ground substantially.

The most significant of these is the Russian invasion of Georgia [the country in the Caucasus, not the State in the South where my son goes to school- No the Russians are not about to burn Atlanta. Tiblisi may be another story]. 

This has reached the point where a major oil pipeline to Europe is actually threatened.  Oil is already rising in response to this.  The immediate response of the EUR/USD has been to drop even more sharply. I saw the [Trading Post Client] email quoting Bloomberg's report noting that Paqk Lai Ng in Singapore sees the EUR/USD coming down to just over 1.52. Bloomberg is a little behind the curve on this one- the pair has already touched 1.49, and is trading at 1.4968 as I write this. 

This makes sense- it is the pipeline to Europe which is threatened.  But in the broader market the rise in oil prices may interrupt the dollar rally (and it was probably time for a correction anyway). August may be a very active month after all. 

I have tried to show my students that fundamentals extends far beyond central bank rate decisions and economic announcements to include all significant news that moves the market.  We may be about to get a major example to illustrate this lesson.

This is just  reminder that the Trading Coaches do a terrific job in the Online Training Rooms.