Our open USD/JPY trade (30%) which expires on Wednesday has firmly hit profit this morning for subscribers of the services as the Yen has fallen hard overnight on the back of equity falls in Asia.
Renewed concerns over the global economy have come to the fore again accelerating on news that bankruptcy could be an option for US car manufacturers GM and Chrysler.
This is likely to be a defining week in global markets with the G20 summit of world leaders likely to dictate the tone of the markets for the foreseeable future. Expect to see heavy gyrations across all markets. Our bias is that we are likely to see the start of a new ‘down leg’, but the reality of the matter is that the outcome of the G20 meeting will set the tone and this could go either way.
So we will be treading with renewed caution this week, starting with the recommendation to set a ‘stop’ order on our open trade at half or our stake in the first instance. This will at least protect some risk in the event that a sudden wave of enthusiasm hits the market as a result of ongoing announcements from the conference.
Remember if you are placing your own trades this week take extra care and build in some suitable margins to account for ‘whipsaw’ moves. High return ‘speculative’ On Touch bets may offer the potential for some good returns, but there is a large amount of risk out there and sitting on the side lines may in the long run, prove to be the most rewarding option.
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