Chinese currency issue have been gaining more and more coverage recently. This subject comes and goes periodically, but it seems to be emerging in a new light now. Chinese Yuan has been pegged to US Dollar since summer of 2008, financial crisis erupted in full. In spite of numerous promises to relax CNY exchange rate, nothing has happened. Some countries are not happy with this state of affairs, calling China "currency manipulator".
It is becoming increasingly politicized issue, primarily in US but not only. Congress is starting to call for sanctions against China, if this continues.US Treasury Department is to decide next month whether to label China as a currency manipulator, opening door for punitive legislation. Any action of this sort will likely create additional volatility in all currencies, something to watch out for in next few weeks."
Our services had good week, one could even say very good. Both of them posted nice gains. We can only hope their performance stays like this. Please see results below and follow link for details.
(Sunday 03.22.2010).
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Here are the results for last week:
- Daily Pound made 267 pips ;
- Daily Euro gained 112 pips;
Follow the link on the right to view details.
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Last week's review.
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In the last update we discussed possible trade in EUR-CAD. Intention was to buy it at 1.4065. Our entry was met, but market reversed right away. Later on it made another bullish run,after a rather dramatic reversal, we decided to close it at 1.4000, for 65 pips loss. Currently another buy order is pending, this time at 1.3870, with objective of 1.4000.
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Trade of the week.
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After comments from SNB board member last week about "letting market decide CHF rates", Swiss Franc experienced substantial appreciation. Must be nobody expects more interventions. It feels that rally by CHF is a little over done. At the same time, Japanese Yen appears to be poised for a move. With this as a background, we are looking at selling CHF-JPY.
This pair is in a process of building a possible top, favoring a move down. We would like to sell it at 84.70, with about 100 pips objective.
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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