AUTOREFRESH 
Shuffling the deck chairs…
By Jamie Coleman || July 28, 2010 at 14:46 GMT
|| 6 comments || Add comment
Stepping back a little and looking at the whole landscape, it looks as if traders are shuffling around positions to reflect underweight exposures to Europe and the UK and overweight exposures to commodity currencies. The dollar is losing out modestly across the board at the same time.
Heading into the fixing EUR/USD is at 1.3030, Cable at 1.5620, USD/JPY at 87.50 and AUD at 0.8935.
can we expect a bounce in gold ?
Bit new to all this – can someone calirfy what the ‘fixing’ means?
Jamie….lol…..OZ has the 8 and 9 reversed….I did a coffee spit take when I read the post going omg did they jump into the commodity plays…lol.
Fixing: A preset time of day when bids and offers are aggregated and cleared at a published price. Popular fixings are the “ECB fix” at 12:15 GMT and the London fixing at 16:00 GMT. Fixings are used primarily by asset managers. They have a fiduciary responsibility to get their clients the best possible execution and the thinking is the fixing price is the most transparent of the day. The benchmark price is published by the WM Company. See Jargon page
Gold will rise if the US print more dollars as a hedge and if stocks rise. If stocks fall dramatically then we seem to see a fall in gold as people unwind leveraged positions. But if things get really bad gold can becomes a safe haven.
Jamie,
The bounce in the eur/usd is short lived from this afteroons point of view. At 1.3000 there seems to be a pivot point with no serious moves either side lasting long as yet.