Euro and Gold Still Benefiting from the Fed’s Bombshell
(eToro Blog) With a quiet trading day ahead absent of any major economic news, the Euro is continuing to find support from the bombshell dropped by the U.S. Federal Reserve on Wednesday when Chairman Ben Bernanke announced the extension of the bank’s low interest rate commitment and suggested that another round of quantitative easing could be forthcoming if conditions warrant. Earlier, the Euro-Dollar was trading slightly lower at 1.3103, and sentiment on the OpenBook still tends to be bearish in direction. OpenBook guru pyruss has been regularly scalping both sides of the EUR/USD pair over the past week, notching small but steady gains which have allowed him to retain his place among the top 10 on the 6-month rankings board.
OpenBook trader whatsioulis, who has 20 followers and no copiers as of yet, also played both sides of the EUR/USD pair, but has done significantly better with his shorts, most recently recording gains of 102% and 100% respectively. Several long positions which were closed within the past 18 hours were not shabby by any means, giving this trader nearly 25% gains for each.
The Fed’s announcement has also given a solid boost to gold prices, which rose above $1,700 an ounce for the first time in nearly two months. Investors speculate that the Fed’s newly extended policy could give rise to higher inflation and are buying gold as a hedge against that likelihood. On the OpenBook gold is selling at $1,717 per ounce, and sentiment is generally bullish. One OpenBook trader who is, for all intents and purposes, the epitome of a gold trader is wallstreet88, who allocates 99.2% of his portfolio to gold. In the past day, he has closed nearly three dozen trades, both longs and shorts, to varying degrees of profit. Someone who is thinking about trading gold might want to consider this trader, who already has 177 followers and 39 copiers.
With the Eurozone’s underlying troubles still unresolved, traders will closely watch the Euro today as markets prepare to close down for the weekend; Friday is typically a fairly volatile trading day for currencies as traders consider whether or not to allow open trades to run through the weekend.
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