Golf-Forex-Federal Reserve-NFP: Get Ready

TheLFB's very own Tim Burke tees it up at the Remax World Long Drive competition on Friday, with live action from the final day coming courtesy of ESPN3.com. Good luck from the trade desk Tim, if anybody deserves this, you do.

The markets absorb a Bank of Japan rate statement, and look for indications that the Japanese Finance Ministry may have some kind of plan to address the high yen valuations, having apparently already failed on a couple of occasions to reverse the steep decline in Usd/Jpy.

Throwing Jpy into the Usd sand storm right now is not going to cut the rug, and therefore stealth measures may need to be undertaken to get things done. Watch for some volatility in yen cross pairs going into year-end.

Not to be outdone on one of the most pivotal economic weeks of the decade, the U.S. throws out Non-farm Payrolls for the enjoyment of all, and in doing so adds to the economic conundrum that, once the weekend is over, will transpose itself into trends and momentum plays that last for more than half a session, as has been the October norm.

Next week’s economic calendar is very quiet, and that will enable forex pairs to really find fair value against the Usd, and will also allow traders to examine the on-going inverse correlation between equities and the dollar without sound-bite headlines getting in the way.

As Friday wraps up, many will look back at a period of trade that is rather surreal, and definitely look back on a week that will go into the annals of history as a pivotal economic time. The Federal Reserve pushed all-in on Wednesday, in a high stakes game that they really cannot afford to lose.

Disclosure: TheLFB runs an automated trading program that is constantly one side of the dollar or the other, in-line with the detail posted in the article.