It has been a tradition for last few years that world and business leaders gather in Davos, Switzerland, for World Economic Forum. This year it has a special meaning, with most of the globe suffering from the worst economic down turn in decades. It is unlikely that this gathering will produce any sustainable solutions to current problems, but some comments and views expressed there might be influential enough to be behind early market moves after Sunday open. Might be worth paying attention to.
Last week was, once again, full of bad news. South Korea reported economic output fall of 9.6%, while US GDP contracted by 3.8%. Japan's outlook also worsens, with electronic giants joining car manufacturers in reporting losses. We believe this will have a reflection in Yen, which will most likely weaken considerably over coming weeks and months. On the other hand British Pound has finally shown some strength. It received a boost from George Soros's comments in mid week.
Our services closed January with strong showing. Both of them had good gains or the month. We updated our detailed results tables, including performance graphs. New pages for 2009 were created and they can be found here and here. Older pages for 2004 and 2005 were moved to Archives and remain in navigation. For last week's result see below and follow the link on the right.
(Sunday 02.01.2009.)
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Here are the results for last week:
- Daily Pound made 379 pips ;
- Daily Euro gained 177 pips;
Follow the link on the right to view details.
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Last week's results.
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Our trade from last week was an intended buy in NZD-USD. Plan was to buy it at 0.5374. This happened on Wednesday, right before FED rate decision. New Zealand dollar went into tail spin soon after. We had 75 pips stop/loss in place and that is how the trade ended. As of this writing, we placed another buy order. This one is at 0.5148, with a 100 pips objective.
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Last week brought on a lot of new developments in Forex markets. Both New Zealand and Australian dollars suffered heavy declines. Perhaps most interesting is increased pressure on Euro. We are starting to see it as return of bear market for EU currency. At the same time, the seemingly untouchable Yen is starting to show some cracks. We will look at the combination of these 2, or EUR-JPY cross.
This pair went down rather hard in last few days and it looks that a correction is in order. We are not looking for any large move, but a relatively small fluctuation, as dictated by 1H charts. Plan is very simple, buy it at 115.90 and a target of 117.00.
Have a great trading week!
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If you like this kind of trades you can find more
in a forex trading blog
FX MADNESS
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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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