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| Demand for strong Dollar.
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US Dollar continues to fall against all other major currencies. It has become most visible versus Australian Dollar and New Zealand Dollar, but European currencies are right behind, with Euro and Swiss Franc making yearly highs. This increased weakness of USD has become a cause of concern to many. Nations holding debt denominated in American currency has been calling on US government to do "something" to preserve value of their investment. In response our leaders proclaim "strong dollar policy", but USD keeps falling.
Some go as far as saying, that, in spite of claims to the contrary, Washington is letting Dollar fall on purpose, encouraging debasement of currency, in order to finance ever increasing debt. To put an end to this kind of talk, financial authorities might be tempted to intervene on behalf of USD. This is discouraged by leading economists like Nobel laureate Joseph Stiglitz, who warned against intervening. Quite a conundrum, which will only increase volatility and level of speculation in days and weeks to come.
Our services had a slow period. Please see the results below and follow link for details.
(Monday 10.12.2009)
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Here are the results for last week:
- Daily Pound made 34 pips ;
- Daily Euro lost 35 pips;
Follow the link on the right to view details.
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Last week's results.
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Trade from last update was a buy in GBP-USD. It didn't work out as planned. Entry was on a move above 1.6060, targeting 1.6200. Unfortunately price turned south shortly after buy order was triggered. We took 62 pips loss on this trade.
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After few months of strength, Japanese Yen is slowly coming under some pressure. It has already been demonstrated in relation to Australian Dollar and New Zealand Dollar. Now European currencies are also starting to appreciate at JPY expense. We think US Dollar could be next.
We don't want to simply get in on the long side of USD-JPY, but rather wait for directional confirmation first. in this example we consider it a move above 90.52. If this happens we plan to stay in until 92.00, or about 150 pips.
We wish everybody great trading week!.
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Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com .
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Risk disclaimer:
Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.
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