It appears only bad news are making into the media stream these days, with no end in site. More and more jobs lost are announced every day. One of the leading electronics retailer in US, Circuit City, will be closing all of its stores, at a cost of 34,000 jobs. Other national companies reporting payroll cuts include AMD, Hertz, WellPoint. What main media sources do not comment on are job losses incurred by smaller, local corporations. Those are also steadily growing.
At the same time banks reported heavy losses. This includes most of the biggest financial institutions in USA. Citigroup, Bank of America and others. BoA received $138 billion lifeline from federal regulators. Situation in Europe doesn't look much better. German economy is expected to shrink by 2.5.% and S&P slashed credit rating of Greece.
All these development insured continued volatility in Forex market. Euro continued its steady fall, although much more orderly than recent Pound's fall. Uncertainty remains and main trends are not easily defined. US is still seen as taking most proactive approach to combat the crisis, which will likely benefit the dollar for the foreseeable future - few months or so.
Our services were mixed last week, with one producing an average profit, while the other had small loss. See the results below and follow the link for details.
(Sunday 01.18.2009)
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Here are the results for last week:
- Daily Pound made 71 pips ;
- Daily Euro lost 20 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-CHF. Our intention was to buy it at 1.1298 with a target of 1.1550. Price came within few pips, but just short of our entry. We will carry this order for another week.
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British Pound has been in the news a lot lately. This currency has suffered huge losses over last few months. New all time lows were established against CHF, EUR and others. Price behavior last couple of weeks suggests the worst may be behind for GBP, or at least some kind consolidation will take place for a while. Whith this in mind, we are looking at a trade which would benefit form Pound's strength.
Currency pair we rarely visit here is EUR-GBP. It has become very active with large intraday movements. We intend to sell it at 0.8830. Objective is 0.8700. Historically this would have been very ambitious target, but these days even daily moves often exceed it.
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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