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| Sovereign debt fears return.
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After prolonged period of relative piece, the fears of sovereign debt default in Europe intensified once again. They are focused on the PIIGS countries, with Ireland being in the middle of the controversy. Financial markets have indicated how uncomfortable they are with the Irish situation by placing premium on the republic's debt. The spread between Irish and German bonds of the same maturity have widened to an all time high of well over 6%. In question is the entire banking section. A strong possibility exists that an EU bailout will be necessary, in the amount between 45 to 90 billion Euros. While Union authorities stated their commitment to aid Ireland, markets remain unconvinced which could have reflection in the Euro during coming weeks.
Both of our serviced had a positive week and are in the black for the month of November. Please see the results before and follow the link for details.
(Sunday 11.14.2010.)
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Here are the results for last week:
- Daily Pound made 54 pips ;
- Daily Euro gained 64 pips;
Follow the link on the right to view details.
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Last week's results.
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in our last update, we discussed a trade set up in USD-CAD. The plan was to sell this pair at 1.0150, with a 100 pips objective.This trade worked out as intended, reaching the target of 1.0050 in a couple of days. There was a moment of choppiness in the wake of the NFP report, but in the end the outcome was positive.
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Trade of the week.
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Currency movements during last week created a lot of interesting possibilities for days ahead. Among them is the NZD-JPY. This pair has formed a trading range about 200 pips wide, which is likely to give way soon. We are taking a non directional approach, placing a straddle - orders on both sides of this range. On the upside we have a buy order at 65.00 and below the range we placed a sell order at 63.00. Both of them have the same objective, 100 pips.
Have a 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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