Forex Trade Idea Update - 12/13/05

Well, it looks like I'm positive pips today. I entered short on USDCAD @ 1.1531 at 7:20 am EST and at 10:23 am my profit target of 20 pips was hit. I hope others have benefited from the Forex trade idea this morning.

So as expected, the Fed raised the raised interest rates another quarter of a point. Here's the Yahoo Finance article on it if you want the details. But the most important part that moved the markets was how the Fed left out a key phrase they usually include when they raise rates - "that even with the increases rates were still quite low." This is a signal to economists that the Fed is close to halting the rate hikes, possibly after the March or May Fed meeting. We'll just have to wait and see what the economy does and if inflation creeps up.

I have 3 more days until December options expiration. Wall Street used the Fed's remarks today to rally. Right now I'm 3 points OTM on my XEO position. Hopefully, it'll stay that way for the rest of the week!