In a surprise move, the Fed made an unscheduled 75 basis points rate cuts, and recently just made another 50 basis points rate cuts. I think this is a fairly aggressive move by the Fed in a bid to lift the economy.
Stock prices are rallying based on some optimism, so that might have some impact on carry trades. But in the long-run, with most people now worrying about a recession, I expect more people to be risk-adverse and carry trades to unwind more.
Overall, I'm still using Elliott Wave Theory as one of my key trading tools.
Technical Analysis of the Forex Spot Markets using Elliott Waves, Chart Patterns, Candlesticks and other tools. Disclaimer: None of the comments in this blog shall be construed as professional trading or investment advice.
