Profit: $53.93 Total: $1,377.21
Yellen is famous for her dovish rhetoric and thus has a way of bringing the dollar down. She reminds me of a overly protective mom or grandma who’s priorities are safety first. Yellen’s speech at the Economic club brought the dollar down resulting in a volatile market reaction. Her dovish speech mentioned about caution in rate hikes, low inflation, mixed U.S data, strong dollar and Chinese uncertainty. At the rate we are going now, it seems like the next hike could be a bit longer than we expected.
I had a great pre NY session by shorting the AUD/USD and the AUD/NZD. I could’ve ended at decent profit and stopped trading during a dead pre Yellen market, however, I chose to position a couple short dollar trades with a tight stop loss. It’s no surprise of a dovish Yellen so I thought it was a position worth taking. EUR/USD and GBP/USD were my weapons to short the dollar against and the results were satisfying. Sometimes news trading is well worth it.
Post Yellen EUR/USD.