A Recipe for a Financial “Perfect Storm”

Last week saw the Global Equity markets, Oil, stocks and other markets come under heavy pressure. It was a combination of all the criteria required for the “Perfect Storm” with headlines coming from China, Equities, Oil, Commodities and negative sentiment. With that combination the markets had nowhere to go but south.

The new week will see the Oil markets looking toward added supply from the Iranian supply line. It is my guess that this has already been priced in so the grind toward $25.00 a barrel will continue, but possibly at a slower pace. As long as world markets slow down, WTI crude prices can be expected to continue its slide.

Where Does Forex Currency Fit In to the Perfect Storm?

It was another big week for the Greenback and Yen against the majors. Most especially battered were the Commodity pairs (AUD, CAD) and hot on their heels was the GBP. The EUR tried its best to rally but ran out of gas on Friday. This week’s ECB press release scheduled for Thursday could bring some short term relief for the EUR. However, if the news is not supportive, the ForexSignal Trading Desk believes the next leg toward parity for the European nations currency will be accelerated.

What To Expect?

Aside from any dramatic developments, we see further migration toward the USD and JPY. Our outlook for the week ahead remains much the same as it’s been until now, and we will be looking for trading opportunities to go long on the USD.

Our Forex Signal subscribers WORLDWIDE can look forward to being alerted when the time is ready to trade with exact Forex Signal Entry Point, Stop and Take profit levels.