Debilitation Period For Greenback.

Strength and momentum from USD bull is slowly shifting side as more and more expected weak data signalling economic slowdown is reported more from today. Empire State Manufacturing, TIC ( Net Foreign Security Purchases), Industrial Production, Philadelphia Business Activity ALL dropped below consensus. For USD there were positive surprises as well, Jobless Claims were down to 4-month low. Yup~ Only one... higher CPI proved negative for the greenback as investors are worried about the slower growth. Adding fuel to fire today, the TIC showed a drop as much as 33.6% from the month of of April. This is highly negative as TIC is crucial in supporting the nation's humongous current account deficit. This drop in TIC is mainly caused by investors and traders are lacking of confidence in the US economy as the Federal Reserve Chairman Ben Bernanke continues to signal higher interest rate to curb inflation, ignoring the slowdown in the economy. I'm expecting a deficit of at least -228B for US current account balance which will be reported tomorrow. For the Eurozone CPI, the report matched consensus as the CPi remains unchanged at 2.5% YoY and 0.3% monthly and core CPI in 1.3%. The Euro losses it's momentum previously as ECB President Trichet was being neutral in interest rate decision and refuses to use the word 'vigilant'.

From my analysis, dollar has a plenty more to lose in the coming weeks and months and very little to gain. Price of commodity has gained stability after the turbulent drop especially in gold after a drop almost reaching $50 per ounce. In order for Euro to rise, it needs lots of strength and push. Excellent Eurozone data is needed, but I've no doubt that the retail sales in Germany would definately rise thanks to World Cup hardcore fans.

Another of my EUR/USD trade is taken today due to the high volitility. I'm looking forward to close all my trades without any negative and looking forward of using a new system. For details of the system please click here. No changes of trades today only a trade taken for EUR/USD @ 1.2650. ZAR is still being a pain in the ass for me. I really hope i can eliminate it soon. For whoever's is looking to buy ZAR... I'd suggest NO!