In response to yesterday’s lowering of the rating for long-term loans from the U.S. by the S & P’s rating agency, the equity markets reacted frantically by trading with heavy sales and then calming down again until later in the day. The U.S. dollar had some recent gains against the euro and British pound sterling to make cuts, with the EUR currency value up to 1.4352, then falling back to the early Asian trade on its current level of 1.4230. With this erratic, high volume movement, the forex trading systems that we teach could’ve netted you some great returns just from scalping the market. To discover how we scalp, you need to pick up our best forex trading course that we are selling at a low price right now.
But the rating agency Standard & Poor’s changed its rating yesterday on long-term loans from the U.S. from “stable” to “negative”. They gave a negative rating as a reason for indecision and inaction on the part of policy makers. Because of the stalemate, which in the past two years in Washington, DC has developed, this decision was long overdue by many. In this week’s investment portfolio there will be alot of alignments, as well as the trades that you should be alarmed of.
The decline of the dollar against the euro, however, was less due to the lowering of the rating, as the euro area has continued to struggle with their debt problems. Many reports from Europe have recently turned to the debt situation in Spain and Portugal, but more recently, Greece has again come to the forefront; the general economic weakness, and unexplained debts need is urgent to take hold. However, there is a general mood for a financial rescue to take place, but this will have many investors to turn to safe investments instead.
Today, most traders should focus on trading in the Europe session, as expected, there are plenty of business publications coming out. However, it would be unwise, if traders would not notice the announcement scheduled for 13:30 GMT, the U.S. reports on building permits and sales of building new buildings.