Forex Portfolio Update | MulderFX.com

Nothing is better than a week in which everything happened in accordance with our previous Forex Portfolio Update. The return increased to well over 30%! We currently have many open positions, which makes the return to fluctuate.
Besides the good news about the current return, we are satisfied with the fact that we are able to read the Forex market again. Sometimes minor changes in the strategy can make all the difference. The line between good and bad months in Forex is paper thin. The month of January will have a positive conclusion.

If we briefly discuss the week we start with a relatively quiet Monday. Besides a stronger Swiss franc (CHF), there was not much else to report. We can say this about Tuesday. Important macroeconomic news from the UK was heavily disappointing. Instead of an expected GDP of +0.5% , it was -0.5%! This significantly lowered the sterling against all major currencies. This figure raised fears of stagflation, which is the collapse of the economic growth, coupled with (high) inflation. Especially our open GBP/CHF positions were impacted, which is very negative for the yield. Also the EUR/USD increased steadily despite U.S. consumer confidence was substantially higher than many expected. The EUR/USD reached 1.37 since a long time. Wednesday there was a major event on the agenda; the interest rate decision by the Fed and the accompanying explanation. It was a non-event, because the market hardly reacted. The Sterling recovered Wednesday after the BoE minutes. The expectation that Thursdays would be a quiet day awaiting Friday, was disrupted in the morning. S & P lowered Japan's credit rating from AA- to AA. This decision determinde the rest of the trading day. Last week we did many trades in currency pair USD/JPY and not without success. We expected that friday would give us more insights on the coming weeks. The U.S. GDP figure fell by 3.2% while 3.5% was expected. Since the EUR/USD did not break 1.3750, there was a sell-off in EUR/USD at the end of trading which led to 1.3610. The stock markets lossed and more and more uncertainty arose over Egypt. The trend for the coming week?

Forecasts next week
Like last week, most traders look to Friday. The job growth rate (NFP) from the U.S. is on the agenda again. In preparation of Friday there is enough other economic news from Switzerland, Canada and Australia. Attention will also be given to the developments in Egypt. We expect in the start of next week that traders choose to say goodbye to the risky assets, which may lead to the USD to increase. Towards the NFP figure can perhaps the USD will be sold again, uncertainty about the outcome of the figure will move to other currency traders.

We are curious knowing that we could see heavy movements next week.