Once again, Mrs. Stefka Panterova is among the finalists in the Forex Masters contest, after landing on the second place for the month of August with a gain percentage of 122.22%. More information about Mrs. Panterova you can find in her profile for the month of June.

  You trade mostly with the currency pairs EUR/USD, AUD/JPY, USD/JPY and EUR/JPY. What made you choose these pairs?

  The state of the market today is such that “carry trade” deals are the most sensitive to news releases and offer the largest opportunities for the speculative investor. That is why I prefer currency pairs which include the Yen. One of my favorite pairs is AUD/JPY because it is sensitive to the US construction sector news releases, respectively offering an opportunity for large movements.

  Do you make “carry trade” deals? Do you think they are a more consistent source of profit?

  Unquestionable, lately the “carry trade” deals were a source of large profits. Although the theory for the effective markets rejects the “carry trade” deals, I believe that they will be a valid and successful strategy in the future.

  The large interventions of the leading Central Banks for stabilization of the credit market from August 12th and 13th, led to a fall in the Yen compared to the Euro and USD. What were your expectations for the price movement after these interventions?

  Investors interpreted the intervetion as a sign for future support from the Central Banks and that is why the exchange markets reacted immediately after the intervention. This led to a returning of faith in the „carry trade“ and the Yen began to fall again.

  This month you opened positions only on the 15th and 16th of August, when the Yen shot up. Were you expecting a yearly high compared to the major currencies?

  No, I wasn’t.

  After the race of the Yen you did not have any trades. Were you expecting that the market would take a sharp downward turn and that the Yen would fall drastically or did you have another reason not to trade?

  I managed to catch the race of the Yen only at the start. I determined that the inertia caused by the negative news concerning the mortgage sector in the USA, is too strong and that the Yen will continue to rise. After I caught this second rise I decided that it is best to wait until there is information for a new trend (which will be influenced mostly by the situation in the USA).

  Do you expect any surprises in the currency market this month?

  At this time it is very difficult to make a prediction. I will wait intil there are more certain indicators for future positions.

  How do you see the movement of the currencies in a medium term plan? Do you think that there will be changes in the interest rates of the leading Central Banks or other interventions on their behalf?

  I think that trades such as the “carry trade” will begin again during the following months and this will cheapen the Yen and make more expensive the high interest currencies. I think that the AUD has a potential for large upward movements. I think that the interest rates will be lowered towards the end of the year.