One of the most important events coming up this weekend are Japanese elections. The ruling Liberal Democrats - traditionally a pro-business, conservative party - have been in power for over half the century. There have been wide spread voices of dissatisfaction all across Japan, however, over Japan's worst economic slump since World War II. General public expressed loss of confidence in the ruling Liberal Democrats' ability to tackle tough problems such as the rising national debt and climbing unemployment. Estimates suggest that they are set to concede power to a challenger, the left-of-center Democratic Party of Japan, who promised to implement business and political reforms.
Immediate influence over financial markets are difficult to estimate, but there are bound to be some moves. Currencies could be especially volatile, being the first market to open after the weekend. Most traders would be wise to stay away from trading Yen, until clear trends emerge.
Our services had a flat week, with both of them registering minor gains. Month of August has been very good for them, but most of the progress was made early on. Please see the results below and follow the links for details, including updated performance graphs.
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Here are the results for last week:
- Daily Pound made 10 pips ;
- Daily Euro gained 7 pips;
Follow the link on the right to view details.
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Last week's results.
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In the latest post, fair value of dollar, our trade of the week was a buy in EUR-CHF. Our intended entry was at 1.5195 with a target of 1.5240. Order was filled early in the week. Trade was not of to a fast start but couple days later price rallied and our objective was reached for 45 pips gain.
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Very often currencies move in a pack, getting weaker or stronger against the Dollar. There is always an interplay amongst them, but most analysis focuses on Dollar pairs. However, even within this general USD division, there always is a currency, or two, which stand out because of going against the trend, or having strongest moves in that direction.
Recently this stand out currency has been the British Pound. Over last few weeks GBP became the weakest currency among the majors. It is visible on all charts, including GBP-USD, which sold off dramatically.
We think this phase is coming to an end. Trend reversal is in order. We are looking for a relatively small move in the opposite direction. A buy order is placed 1.6390, with a target of 1.6500, fairly large objective for the time frame used.
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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