It is obvious that US election was the number one news item last week. Heralded as historic, election produced new president, with high hopes for all kinds of sweeping changes. Economy is supposed to be top priority of new administration. President elect was greeted with massive stock market sell off, of about 10%, before rebound on Friday. Also, labor market showed worsened considerably, with unemployment rate moving to 14 year high, meaning 10 millions of Americans are out of work. Auto makers are asking government for bailout, warning of cash shortage, which can potentially shut them down.Combined with an unprecedented debt level, economic outlook looks bleak.
US elections aside, there were plenty other important news. More rate cuts took place around the globe. Most notable was move by Bank of England, which slashed rate by 1.5%, the biggest such move in many decades. It led to farther sell off of the Pound. Also, European Central Bank lowered its benchmark by more modest 0.5%.
All of this helps maintain volatility at high level, although lower than just 2-3 weeks ago. Especially intraday, very short term volatility has dropped. This was very helpful for our services. Both of our system had a great week, showing over 400 pips gain each. Please see the results below and follow the link for details.
(Sunday, 11.09.2008.
|
|
|
Here are the results for last week:
- Daily Pound made 448 pips ;
- Daily Euro gained 483 pips;
Follow the link on the right to view details.
|
Last week's results.
|
Follow up from last week. We placed a straddle order on AUD-JPY. Intended buy was 68.20 and this was the trade that was filled. Target was set for 71.20. Price never reached this level, but we managed to close the trade at 69.21 for nice 101 pips profit.
|
Now that the election is over, investors will assessing the impact of new administration on financial markets, including the dollar. There is already talk about new stimulus package and other actions. Chances are there will an aura of optimism for some time, which should benefit USD. This may last few months, before other fundamentals will take precedence and begin influence markets.
We are taking a look at USD-CHF as our trade of the week. Our intention is to buy it at 1.1820, with target of 1.1950.
We wish everybody great trading week!
| 
|
|
|
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 .
|
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.
|
|
