Big fundamental news took the lead last week, an abundance of them. The huge $800 billion stimulus package was approved. While new administration claims that it will be felt by April the 1st, hundreds of economists already expressed their misgivings about the plan viability. Shortly after, Obama unveiled his $75 billion mortgage relief program, which also came under immediate attacks as rewarding bad financial decision on part of individual home owners. US auto makers presented their recovery plan to the congress, in which they seek additional allocation of money, above what was previously agreed. This just from United States. No surprise that markets experienced large moves. Stock market plunged to new lows, taking out support established in November. Many analysts predict farther deterioration. This is the kind of effect big fundamental news have on markets.
Currencies behaved in very choppy manner through the week. Plenty of sharp moves, that reversed just as sharply. USD has been getting quietly stronger in a difficult environment, until late Friday, when it lost about all of its weekly gains.
Our services were largely mixed. See the results below and follow the link for details.
(Sunday, 02.22.2009.)
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Here are the results for last week:
- Daily Pound made 4 pips ;
- Daily Euro gained 276 pips;
Follow the link on the right to view details.
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Last week's results.
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Last week we presented a trade in USD-JPY. Our plan was to buy this pair at 92.55 and target of 94.60. Trade worked out as planned. Almost. We exited it at 94.42, as market came just short of the target. Regardless, trade produced 187 pips, very good results.
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Trading conditions were very difficult last week. Markets changed directions couple of times daily, with little clues as to why and for how long. These often are signs of building intermediate term reversals. Late on Friday markets made very large moves, at the expense of USD, which came under severe pressure. Swiss Franc was the biggest gainer, but other currencies look to continue their advances.
We will try to buy Pound, as in our opinion it has good probabilities to get stronger. Order is placed to go long GBP-USD at 1.4493. Our objective is at 1.4600, or a little more than 100 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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