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!