Video and Analysis: Hitler and His Margin Call

Here is a short USD trading outlook and a short entertaining video for your enjoyment towards the close on Friday trading. Looking forward to see you guys here again this next Monday. Have a great weekend ahead!

The financial markets have a lot to digest today as they attempt to assess the implications of the USD 500B bailout plan for the US financial system, where the assumption is that, this program could greatly improve liquidity and allow affected firms to salvage their problematic assets, and put an end to scares/panics made by the market on these big firms. Therefore, because of this, the U.S Treasury markets gain another USD500B of new debt. As I understand that many investors now may feel that the current strain is far from over, I still urge everyone to observe equities closely, if you remember yesterday closely, you would understand that the net change of the indices at the end of the day is more important than its change before the open.

I would believe that the markets may very soon focus its attention as to how the US Treasury could sustain its 'liabilities' which it has attained from the private sector over this 2-month period.

In summary of today's events in Asia markets, Shanghai and Shenzhen stock exchange closed sharply higher, trading within a very thin range on intraday trade, as the Chinese government took steps to bolster stock market prices. STI, Hang Seng, Nikkei and most other asian exchanges followed suit as sentiments of 'the panic may be over' mood sets in.

Libor and JGBs yields were traded less erratically as compared to how it was quoted over the past 3 days. Treasury Bond prices are also weaker as the market goes into 'the panic may be over' mood.

Commodity currencies like CAD, AUD and NZD were mixed. EUR, CHF, JPY and GBP traded lower against the USD.

Gold eased modestly as well, as investors target for higher returns from other instruments, other than the refuge instrument. Oil remains firm, but look out for the $100 line, as it may seem like a pivotal price for the instrument.

Lastly, should time allow, take a close look at Eur/Usd and Oil. Does it say anything to you?

Now, let's enjoy this short clip from hitler, and enjoy a great weekend ahead.

Cheers ;)