Bloomberg Surveillance Single Best Idea with Tom Keene: Bob Michele & Brad Bechtel
Jul 1, 2025
Explore expert insights on navigating the current economic climate and the potential rise in Fed funds rates. Learn about foreign exchange trading strategies and common pitfalls to avoid. The discussion emphasizes caution and adaptability in trading amidst volatility, particularly with short dollar positioning. Get historical insights on the U.S. dollar and prepare for the upcoming Jobs Report with essential financial planning tools.
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Return to Normal Market Regime
- We are entering a market environment resembling pre-2008, where capital demand meets cost and productivity requirements.
- Interest rates might trend higher, potentially reaching 4.25% or even 6%, reflecting more typical market dynamics.
Stay Nimble in FX Trading
- Avoid getting overly convinced on one foreign exchange trade as markets are volatile and unpredictable.
- Stay nimble by hedging and be ready to reduce risk during extreme market moves to protect capital.
FX Markets Are Sawtooth
- Markets exhibit sawtooth patterns rather than steady trends, shaking out overly confident traders.
- Lighten positions when market positioning becomes extreme and look to re-engage on snapbacks.