Couple of weeks after Dubai scare, concerns over credit worthiness of other small countries are spreading. Greece, which had been on a hot seat for some time over its fiscal policies, just had its sovereign credit downgraded. The rating on countries government bonds was cut by Fitch Ratings to BBB+ and the two other major ratings companies are threatening to follow suit. It is after Greek government raised its 2009 budget-deficit estimate to 12.7% of gross domestic product after Oct. 4 elections, three times higher than an earlier forecast and more than four times the 3% allowed under the European Union?s Stability and Growth Pact. This could have long term implications on economy, raising costs of borrowing and slowing down recovery.
Implications are that Euro will be dragged down by problems in Greece. Should another country in Eurozone, or even with large exposure to the area come under similar strain, Euro could find itself is substantial sell off. We will have follow developments on the continent with interest.
Our services had a flat week, but are both positive for December. Please see the results below and follow link for details. Also, our complete results pages have been updated, including performance graphs. Make sure you see them.
(Sunday 12.13.2009)
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Here are the results for last week:
- Daily Pound gained 36 pips ;
- Daily Euro made 27 pips;
Follow the link on the right to view details.
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Last week's results.
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Last update on this website suggested a trade in GBP-JPY. We were looking for long entry into this pair on a breakout above 143.60. Order was filled as planned and after a pull back our target of 145 was reached for 140 pips. We should have stayed in a trade a little longer, for additional 100 pips or so, because of the adverse move before. We didn't do it, but trade was still a success. Risks in this pair tend to be higher.
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Our last few "Trades of the week" turned out as expected, or almost so. Combined results have been very good, but now markets are entering the Christmas holiday season, when things might be a little different. We will limit number of trades taken during this time, but remain active in markets.
For now USD-CAD is of interest to us. We are looking for long entry into this market at 1.0680. Trade is tricky, in very choppy conditions, but we think 1.0850 is achievable, which would make for a good trade.
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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