Another Doji

Today was another doji day where the market ended almost exactly where it began. I can say that about the account transfer also. FX Solutions would not transfer the funds directly to SummerstreetFX. I will work on getting things expedited, but it may take a couple more days before I'm back trading. This is another reason why I don't like changing brokerages. There are always delays and a lot of paperwork.

Since I did not trade today, I figured I would give a little insight into why the big move last Thursday at 5:30 AM with no announcement. In a matter of 3 minutes, the pound lost 1.5 cents (150 pips) to the US dollar. Why? Because there was some major financial moves behind the scenes again.

Last week the US Treasury issued $28 billion in 7 year bonds to raise some money. On Wednesday and again on Thursday, the Federal Reserve purchased $7 billion each day. What else are they going to do with all that new minted money they created. With buying these bonds on the open market, the Fed is openly monetizing US government debt. But this fact is effectively hidden from a not-too-terribly inquisitive US press and public. This was reported in the Chris Martenson Insider. For more detail, check out the link - www.chrismartenson.com/blog/fed-buys-last-weeks-treasury-auction/23880

And more purchases are on the way. Additional purchases are scheduled over the next couple weeks. This is an ongoing attempt to prop up the US dollar and the debt of the government. Check out the purchase schedule of the Federal Reserve Bank of New York below.

Operation Date	Settlement Date	Operation Type1	Maturity/Call Date Range
	August 6, 20092	August 7, 2009	Outright Treasury Coupon Purchase	05/15/16 – 05/15/19
	August 10, 2009	August 11, 2009	Outright Treasury Coupon Purchase	05/15/12 – 11/30/13
	August 11, 2009	August 12, 2009	Outright Treasury Coupon Purchase	08/15/26 – 05/15/39
	August 17, 2009	August 18, 2009	Outright Treasury Coupon Purchase	12/31/13 – 04/30/16
	August 19, 2009	August 20, 2009	Outright Treasury Coupon Purchase	02/15/20 – 02/15/26

Makes you think twice about the open market, doesn't it?

OK, on to the daily stats for Tuesday, August 11, 2009.

Open

High

Low

Close

Pip Interval

GBP/USD	1.6478	1.6522	1.6430	1.6476	92
EUR/USD	1.4139	1.4184	1.4109	1.4147	75
USD/CHF	1.0852	1.0863	1.0789	1.0816	74
USD/JPY	97.13	97.15	95.75	95.98	140
GBP/JPY	160.05	160.18	157.78	158.13	240

As you can see, the European currencies did not move much today to create another doji. The Japanese yen gained more strength than usual against the dollar. This also propelled the yen to gain against the pound as well.

What this means:
With more treasury notes purchases scheduled, the dollar will continue to be propped up for a while. The doji today is just a breather. However, outside of the Fed's purchases and an improved unemployment report on Friday, the US does not have a lot of good news. I really don't anticipate that the dollar will gain a lot more ground over the next couple weeks.

May the pips be with us!

The Pipmaster
Email: titangroupfx@gmail.com