Americas AAA downgrade – Is it Safe to Trade This Week?

I was asked today in the Forex forum and if it is safe to trade this week after the news that Americas credit rating was downgraded.

I am sure this is a question many traders are asking today so I thought I would make a quick post to answer it.

Short answer is – Yes it is safe to trade but be wary.
Long answer is – The credit rating downgrade did not come out of the blue. Standards & Poor’s has been warning America the downgrade was coming for a while and in the last few weeks it became inevitable. This means that for the most part the downgrades has already been factored into the currency markets.

I would certainly expect some volatility and unpredictable swings. However, as a Forex trader you should always be prepared for volatility and unpredictable swings.

So my opinion is that you should be wary and vigilant but do not take the week off!

Leave a Reply

Your email address will not be published. Required fields are marked *

4 thoughts on “Americas AAA downgrade – Is it Safe to Trade This Week?
  1. Exactly, I keep seeing so many people shocked about the downgrade, but its not like the S7P didn’t warn about this for some time now. And Moody`s will probably follow suit with S&P. But volatility is part of forex and if you cant deal with it then you should reconsider what you want to do.


    1. Gus » I wouldn’t be surprised if Moody’s followed and that caused some movement in the market but again it will jsut be some more volatility.