According to International Monetary Fund's managing director, the advanced economies are in a state of economic depression. Citing the slowest worldwide growth since World War 2, he called for industrialized nations to coordinate their financial actions, rather than doing it alone. Latest $800 billon stimulus package was also praised but it needs to be implemented at the same time as the restructuring of the banking sector. There are still over 8000 banks in USA, many of them in danger, so industry consolidation is seen as necessary.
This was the first time the word depression was officially used in conjunction with current crisis. Central Banks keep trying very hard to avoid this classification and continue aggressive rate cuts policy. Authorities in New Zealand and Australia lowered their respective benchmarks. This was followed by Bank of England, which slashed rates to an all time low of 1%. ECB announced it would cut rates in future, if needed, while keeping them unchanged for now.
All this contributed to another volatile week in Forex trading. Our system produced very good gains in these conditions. See the results below and follow the link for details. Also, scroll down this page to check out our "Trade of the week".
(Sunday, 02.09.2009).
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Here are the results for last week:
- Daily Pound made 205 pips ;
- Daily Euro gained 200 pips;
Follow the link on the right to view details.
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Last week's results.
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Two weeks ago we had a trade in NZD-USD, which produced a loss. This was followed by another buy order, presented last week. This one was placed at 0.5147 with 0.5250 target. New Zealand dollar had a good rally last few days. Our trade made 103 pips in profit.
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Our trade of the week from last update featured EUR-JPY. We were looking to go long this pair. Entry was 115.90. Price swung back and forth but eventually moved in our direction. Target of 117.00 was reached for gain of 110 pips.
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Over last few days currencies that had previously suffered heavy losses regained some ground. This applies mainly to the commodities currencies, Canadian Dollar, Australian Dollar and New Zealand Dollar. We had a good trade in NZD. For this week we are taking a look at USD-CAD. In our opinion it should weaken even more.
Our plan is to sell it. Order is placed at 1.2215 with an objective of 1.2100, or a little more than 100 pips. Price behavior is choppy, but we think it will change into more directional move.
We wish everybody a 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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