Consistent irrationality in forex

If anything, there is indeed a method in the madness that has taken hold
of the market.

Again we have great figures for the US Initial Jobless Claims and the
USD continues to drop.

USD/JPY dropping and the EUR/USD ascending.

Just a bit more and I wouldn't be surprised if a major crackdown
occurs. This is really an "in your face" thing that has no problem
keeping the market irrational for an extended period.

THE NEW PARADIGM IN FOREX

I can just see the headlines now:

EURO AND JPY RISING TO NEW HIGHS ON USD STRENGTH

Duhhhhh

But that is how the market has been moving.

So here you have it, the new paradigm in FOREX:

GOOD FUNDAMENTAL NUMBERS = BEARISH
BAD FUNDAMENTAL NUMBER = BULLISH

Big improvement in US trade balance results in a stronger Euro

This comedy of errors simply does not cease.

We get a HUGE improvement in US Trade Balance and what happens?

The EUR/USD climbs HIGHER!!

Meaning because of the GREAT trade balance figures, the EURO is stronger
and the USD is weaker!

Looking over at the USD/JPY currency pair, you can see the USD dropped
against the EURO too.

Either the markets have turned stupid or there is something sinister.

Traders, someone is playing us.