A Positive Week

Published on Sunday March 7th, 2010 at 12:48PM by ronacoba

The market's sentiment for the month of February was very much negative because of the issues plaguing Europe. Both the UK and Greece and some other countries within the euro zone have been under the spotlight because of their debt problems. And as a result, the market sold off the pound and the euro like their hot or something. Of course, the other non-dollar currencies got negatively affected as well. The month of March, however, started differently. Suddenly those currencies that were sold off rallied. The Loonie, in particular, had its breakout month, surging against the greenback because of the strong 5% GDP growth that Canada had during the 4Q. I was lucky enough to capture part of the Loonie's upward move. Though I lost some of my winnings because I did not know that the pound and the euro would rally as well. I thought that the bias for those two currencies were still negative which led me to short the euro. Obviously I was wrong as they surged for the most part of last week after hitting their fresh lows in the previous month. Was this up move due to a change in sentiment or was it just because of some profit taking? I think its a little bit of both.Overall, I still closed the week on a positive note. So for the coming week, I'll see first how the market will go before I trade.

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