FX TRADING STRATEGY FOR NOV 10

Today, we have a pretty simple set up. We have only one speech that I will be watching and possibly trading. It's Ben Bernanke and Trichet speaking.

1. Friday, November 9th, 2006 (8:45 am New York Time) USA
We have the speech coming out, where both Ben Bernanke and Trichet will be discussing interest rate policies. This may be a tricky one to trade. If you don't have experience trading speeches, you may want to just observe it. I will be looking for clear indications of future interest rate policies. It can get confusing if both of them are hinting on more rate hikes. It would be nice if one of them was hawkish and the other was dovish. A good situation would be if Trichet will hint towards another rate hike in 1st quarter of 2006, and Bernanke will kind of be on the side line. Or if Bernanke says something that another rate hike may be needed, and Trichet will stick to his "vigilant" comments. Remember, the market is already pricing in another rate hike out of Euro zone in December.

And keep eye on French GDP data...