Much anticipated S&P report about US credit ranking was released few days ago. Worries about a possible downgrade to the U.S. debt arose last month after S&P warned that Britain was at risk for a downgrade if the government fails to address its increasing levels of debt. Much to relieve of the markets, S&P said it will retain its top triple A rating for the U.S.'s long term debt and added that the outlook is stable. This is in spite budget estimates that $1.84 trillion deficit this year will be followed by a $1.26 trillion deficit in 2010 and will never dip below $500 billion over the next decade. The administration estimates the deficits will total $7.1 trillion from 2010 to 2019.
In spite if retaining top credit ratings, US securities were under pressure. After all, not everybody trusts S&P, given their track record in mortgage backed securities, and other highly publicized failures. US dollar remained in a largely holding pattern, although rising interest rates could lead to strengthening of USD.
Our systems had a mixed week, but are both positive for the month. We updated our detailed results pages, including performance graphs. Please follow the link below to view them.
(Sunday 06.21.2009).
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Here are the results for last week:
- Daily Pound gained 106 pips ;
- Daily Euro lost 48 pips;
Follow the link on the right to view details.
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Last week's results.
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For last 2 weeks we have been following AUD-USD. Result was a loosing trade followed by another sell order in last update. Entry was at 0.8051 with a target of 0.7965. This trade happened very fast, producing 86 pips.
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Last week we also suggested to buy USD-CHF. Just like last trade, this one came to a speedy conclusion. We entered at 1.0864. Objective was 1.1000 but we closed the trade when market started to show signs of reversal, at 1.0927. Gain was 63 pips, not a bad result.
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Most currency pairs are acting in a very direction-less way now. Dollar pairs are going from bullish to bearish at a drop of a hat, leaving everybody confused . Market sentiment is swinging wildly and will probably keep ding it for some time before prevailing trends emerge.
We are looking for fairly small moves, in the 100 pips range. This time our currency of choice is EUR-USD. We plan to sell it 1.3866, with a target of 1.3760. If this happens, we will take another look, but probably keep selling this pair.
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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