|
| Will more easing sink the Dollar?
|
|
The regular FOMC meeting is due in a few days. Big question around financial markets is how much easing will the FED engage in? The second round of quantitative easing, the so called QE2, is both highly anticipated and feared by players. Renewed campaign of money printing by the central bank is far from assuring the resurrection of the economy. At the same it expected to put farther strain on the US Dollar. Everybody is waiting for the particulars, to further asses what kind of risk/reward is the FED willing to take this time around. In general, about $500 billion in new money torrent over 6 months is expected, but markets want to know more. No matter what the announcement brings, volatility in the Dollar should remain high, with traders jostling for positions both before and after the event.
Our services registered minor losses last week, but produced very good gains for the month of October. Please see the results below, and follow the link for details. Also, our complete year to date tables, including performance graphs, have been updated so take a few moments and check them out.
(Sunday 10.31.2010.)
|
|
|
Here are the results for last week:
- Daily Pound lost 27 pips ;
- Daily Euro dropped 16 pips;
Follow the link on the right to view details.
|
Last week's results.
|
It took some time, but eventually our intended long trade in GBP-JPY took place. We kept lowering our buy order and finally it was filled at 128.00. Objective was 100 pips, which was swiftly met.
|
Another currency pair which we have been following for a long time now, is USD-CHF. This also kept moving away form a buy order, which we simply kept pushing lower. In the end, a long trade was entered at 0.9740. Originally we were looking for a 100 pips objective, but since the start of the trade was very rocky, we extended the target to 0.9900. It was achieved for a 160 pips gain. Long wait, but in the end, a decent return.
|
Trade of the week.
| 
|
Last week turned out to be very confusing in terms of longer term currencies direction. It started with the Dollar getting much stronger, only to retreat later in the week. Chances are, that will continue, at least selectively. We are looking at the USD-CAD pair, expecting it make another push down. Our sell order is placed at 1.0150, with a 100 pips objective.
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.
|
|
