Standard&Poor’s rating agency broke with the recent trend of lowering grades on European sovereign debt. Today the agency announced that it is affirming its AAA long-term rating on Great Britain. Apparently finances of the United Kingdom, or at least its ability to repay debt, are much better than those of Spain, Greece, Portugal. Even though the grade is highest possible, the S&P issued a negative outlook on long term rating. This is basically the same statement as the one released before only stamped with today’s date.
Not that much happened in the world of currency trading. Day was relatively quiet for most crosses, with the Pound and Franc showing the most action, if we can call it that. No gaps at the open made for a very slow start to the week. Things picked up a little later, but on balance, might as well have taken a day off. However, the trade discussed Pound-Kiwi daily chart post, a sell in CHF-JPY, was triggered when the Swissy went through a minor sell off.
The plan was to go short on a break of support at 83.40. The price initially moved closing on the last high and decided to short it, with entry at 84.24 and target 83.65. Couple of hours later the move came and objective was reached fairly quickly. The trend continued down and eventually triggered the original order at 83.40. However, strong support was found at 83.00, short of what I was looking for. About an hour later trade was closed, as the chart started to show bullish reversal. Still positive, though for… 11 pips. More than likely, I’ll try to find more selling opportunities, perhaps around 83.80 – 84.00, depends on what happens in that area.
The AUD-USD is a good example of just quiet the markets were. Price remained in a very tight range for a second day in a row, bound by 0.8780 and 0.8690. I don’t this will continue much longer, with a breakout happening rather soon. Might be a good idea to straddle it with both buy and sell orders. Two ways to play it; one is to try to exploit most of the move by holding the position open until 13:00 – 14:00 EST, or set objectives. I’m choosing the second option and will target 60 pips either way. Something should happen on Tuesday.
Mike K.
Looks like chf/jpy bounced 83.80, as predicted. This set up a nice trade for me. Thanks!
Really like this blog. Always to the point and educational. Keep it up, please.
Glad to hear, it fxguy!
Thank you, Xania. I’ll try…
[...] post covered a straddle set up in AUD-USD. Buy and sell orders were placed [...]
[...] However, the trade discussed Pound-Kiwi daily chart post, a sell in CHF-JPY, was triggered when the Swissy went through a minor sell off. The plan was to go short on a break of support at 83.40. The price initially moved closing on the … View full post on CHF/JPY – Google Blog Search [...]
[...] S&P kind to UK | fxmadness.com However, the trade discussed Pound-Kiwi daily chart post, a sell in CHF-JPY, was triggered when the Swissy went through a minor sell off. The plan was to go short on a break of support at 83.40. The price initially moved closing on the … View full post on CHF/JPY – Google Blog Search [...]
[...] Standard&Poor’s rating agency broke with the recent trend of lowering grades on European sovereign debt. Today the agency announced that it is affirming its AAA long-term rating on Great Britain. Apparently finances of the United … View full post on CHF/JPY – Google Blog Search [...]
[...] S&P kind to UK Standard&Poor’s rating agency broke with the recent trend of lowering grades on European sovereign debt. Today the agency announced that it is affirming its AAA long-term rating on Great Britain. Apparently finances of the United … View full post on CHF/JPY – Google Blog Search [...]