+50 pips: Euro Bulls!!

Everyone is expecting Euro to bull or just about anything that exchanges with the greenback. Because hopes are starting to diminish due to more poor USD data report signalling slower economic growth. But surprisingly the Euro is still facing some pressures from rising as the growth as very much less than expected today. My analysis for this brand new month would be Euro bull. Much is this is based on the possible Federal Reserve pause in hiking interest rates in June 29 FOMC meeting while I'm expecting the ECB will continue to persue 'stronger vigilance' in the Eurozone as most of the data reported were shown that economic growth in eurozone in strong and sufficient interest rates will be needed to curb inflation. Of course~ the event of the year matters... World Cup 2006 in Germany, in Eurozone of course. This is one of the important event that will cause Euro to increase as supporters from all over the world will be visiting Germany just to be in part of the event. Euro will be in demand and needless to say, it'll surge.

From Washington DC, Ben Bernanke managed to cause the dollar to gain some grounds against the major crossing with his more hawkish than expected speech. Even though the once barreling U.S. economy is now slowing down, Federal Reserve Chairman Ben Bernanke on Monday called recent increases in inflation unwelcome and pledged to make sure surging energy prices don't make things worse. In deciding the Federal Reserve's next rate move in late June, Bernanke said the inflation outlook 'will receive particular scrutiny.' Fed policy-makers 'will be vigilant' to ensure that the recent pattern of higher readings in core inflation, which excludes food and energy prices, 'is not sustained,' he said in remarks prepared for an international monetary conference here. Bernanke offered his most extensive assessment of current economic conditions and the challenges facing Fed policy-makers.

'With the economy now evidently in a period of transition, monetary policy must be conducted with great care and with close attention to the evolution of the economic outlook,' Bernanke said

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Somehow he's more interest in curbing inflation and strongly beleive the market is undergoing a cooling moderate economy. The Fed Futures shown now at a HIGH of 74% that the Fed will raise interest rates in June. What a tough talk from that Ben ' Bearded Beast ' Bernanke . Hopefully the action super star or ECB President Jean Claude ' Van Damn ' Trichet will be hawkish in being consistent of increasing interest rates in the following months to come. This speech has caused drops in stock markets and the US Treasuries. I'll expecting this drop will influence the major markets tomorrow starting from Tokyo.

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Closed/Completed Trades
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Long EUR/USD @ 1.2910, TP @ 1.2960 ( +50 pips )

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Existing Trades
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Long EUR/USD @ 1.2800

Long EUR/USD @ 1.2860

Long EUR/USD @ 1.2960

Long USD/CHF @ 1.2280

Long USD/CHF @ 1.2380

Short USD/ZAR @ 6.7000

Short USD/ZAR @ 6.5800

Short USD/ZAR @ 6.0500

Long XAU/USD @ 648.80

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Trades I'm Waiting For
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Long EUR/USD @ 1.3010

Long XAU/USD @ 666.00

I'm expecting EUR/USD to be traded more aggresively tomorrow as it gets nearer to the ECB rate hike which is almost certain plus Ben Bernake's Hawkish speech at Washinton. What's left on the guessing board will be, the hike would be 25 bps or 50 bps and will the Fed raise interest rates?