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!

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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.

    Gus

    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.