Big news are hitting the wires every day now, sometimes even many times over. Investors and speculators base their decisions on them and media speculates over long time effect of new numbers coming out. Some of the most telling, and home hitting, are employment numbers. Or should we say, unemployment. Tolling grimly higher, the recession snatched more than 650,000 Americans' jobs for a record third straight month in February as unemployment climbed to a quarter-century peak of 8.1 percent and surged toward even more wrenching double digits. Total number of unemployed in USA is quoted at12.5 million in February, but the number of people forced to work part time for economic also reasons rose by a sharp 787,000 to 8.6 million. Those are people who would like to work full time but whose hours were cut back or were unable to find full-time work.
We believe that unemployment numbers will be in the spotlight much more than any other news. Unlike news about some distant bank or foreign government, these figure tend to reverberate with most people, being much more personal. They are very detrimental to Forex trading, though. Currencies react in very unpredictable way. We expect this pattern in USD pairs to continue.
Our services had mixed week. Both of them were positive, but not to the same degree.
Please see the results before and follow link for details
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Here are the results for last week:
- Daily Pound made 112 pips ;
- Daily Euro gained 40 pips;
Follow the link on the right to view details.
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Last week's results.
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Trade of the week from our last update was a buy in USD-CHF. Our entry point was at 1.1772 with a target of 1.1880. Trade started in a rocky fashion, with price swinging both ways. Eventually it settled into upward move and we placed a stop/loss at break even. Sharp reversal happened next and or trade was closed at entry for no gain or loss.
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Once again currencies had a rough week. Frequently changing trends, big swings and abundance of fundamental data made for a difficult trading environment. We expect a lot more uncertainty ahead, before markets settle into more definable patterns. In the meantime, we will try to capture shorter, if less predictable moves.
We expect weakness in the Dollar over coming days, but we see it simply as a countermove to latest mid-term USD run. With this in mind, our focus goes to GBP-USD. We see Pound gaining ground, although, at this point, it is only a minor move.
We placed a buy order at 1.4130 and a target of 1.4230.
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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