Events of last year brought up a subject which is not often raised- sovereign credit rating. Since last summer credit agencies have been closely watched, when it came to assessment of creditworthiness of countries.
Earlier in the year waves were made on comments about Spain, Greece and, most notably from the stand point of currency trading, Great Britain. Later on some unflattering comments were also made about Australia and US.
This week sovereign credit rating came into focus again, this time regarding New Zealand. Rating agency Fitch raised fears over the country?s finances.They reiterated New Zealand's AA+ sovereign credit rating, but downgraded its outlook from stable to negative. In statement Fitch said that move reflected concern over the medium-term growth outlook for New Zealand in light of its persistently large current account deficit and rising foreign indebtedness.
NZD fell sharply on the news, but mostly recovered the losses by the end of the week. Perhaps market players realized that credit rating for New Zealand is not really any worth than other major economies. After all, everybody appears to be buried in debt.
Our services had a flat week. See the results below and follow the link for details. Also, visit complete results pages, as they have been updated.
(Sunday 07.19.2009.)
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Here are the results for last week:
- Daily Pound made 49 pips ;
- Daily Euro lost 6 pips;
Follow the link on the right to view details.
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Last week's results.
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In the last update, Limiting Forex Leverage, another trade in EUR-CAD was featured. This one was a sell at 1.6128, with 1.6020 objective.
Trade worked out as planned. Once the move started, target was reached fast for a quick 108 pips gain.
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Another trade covered in last post was a buy in USD-CHF. This trade didn't happen, price came close to our entry, but changed direction. original trade remains valid and we are adding another one in this pair.
We want to buy it at 1.0821 with expectation of reaching 1.0920 or about 100 pips.
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Behavior of currencies over last couple of weeks has been consistent with the so called "summer slowdown". By most accounts, according to multiple sources, returns for professional traders dropped in July. Price moves are less predictable and more choppy.
With this in mind, we are looking to capture smaller moves for now. At this time AUD-USD is a sell for us. We want to enter at 0.7955, targeting 0.7870. However, we will be ready to exit on any sign of price hesitation.
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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