Forex Portfolio Update I MulderFX.nl

The past weeks were turbulent. Many moments had a profound impact on the financial markets, including the Forex Market. Last Monday we started well, at certain point we were close to a 10% return for the month of September. Unfortunately on Tuesday the FED indicated that QEII (QE = Quantitiave Easing) was about to be realized. Many traders expected this to happen at the end of the year. Like the Bank of Japan intervention this came as a total surprise. In addition, the Bank of England also said they are ready to boost economy further if needed. It looks like a contest between Central Banks, who will get the cheapest currency. Will the ECB will also soon follow? Nonetheless it ensured that our performance this month will be negative. We will close all open positions September 30. A small change in our strategy will be made. In outline will remain the same, only the focus will be on short-term positions than long-term positions. Our short-term positions will hedge the long-term positions. The actons of the FED are not completely understandable. Wall Street is at levels that do not create a need for extra stimili. Companies make more profit than expected, several companies raised their dividend again. The only difficult thing is to find jobs for everybody. In my opinion QEII does not directly create more jobs. The previous QE showed this.

Expectations for the coming week
We expect a correction in the stock markets, this will make the CHF, JPY and USD stronger. The biggest question remains, what are the developments in international relations between China-US and Japan-US. Will the Bank of Japan intervene again when the USD/JPY goes towards the 83 level? What will be the tone of the conversation in the U.S about the Yuan? We will monitor the upcoming developments closely.