Global Rate Cuts Hammer Forex Markets

Today in an unprecendented action, 7 central banks slashed interest rates in coordinated global interest rate cut of 50 basis points.

Participating in the cuts were the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, Sveriges Riksbank, and the Swiss National Bank.

The forex markets are full of volatility and confusion as traders stampede to exit leveraged trades. With the deleveraging taking place, the dollar has been making it’s way higher, while the Yen is dominating everything. The carry trade is dead, until further notice!

I would like to hear from you. How have you been handling this market? Discuss it in the forum