Dollar Ends with 8-Week-High. Long Awaited FOMC is just a week away...

Another day of USD rally which was ignited by the Italian bad data from higher-than-consensus trade deficit to lower than expected italian consumer confidence. The sentiment switched to USD so quickly and stirred the major crosses against the greenback in the currency market. Weaker than expected Leading indicator and higher than expected inital jobless claims failed to turn the sentiment around as traders are placing a bet on 2 more hikes this year. So, that means a minimum of 5.5% to 5.75%..... It's all but certain the central bank's policy-makers will raise their short-term rate target for the 17th straight time next Thursday by a quarter of a percentage point, to 5.25 percent. Some traders are even laying small odds - about a 10 percent chance - that the Fed will raise rates half a point next week. Do I hear anyone shouting "Ridiculous?!!". Sure did.

Today's U.S.-made durable goods order excluding transportation equipment rose 0.7 percent in May, easing concern that the economy is cooling too quickly after two years of interest rate increases. This was due to the increased appetite for machinery, metals and communications gear. Companies, encouraged by rising profits, are purchasing new equipment to improve efficiency and help make up for fuel costs that remain near record highs. A boost from business investment will prevent the economy from faltering as consumer spending and the housing market slow. THIS, however doesn't change my outlook analysis on the slower economic growth that WILL fall on US economy. The problem rise again... when?

With nothing good to support Euro and bad Italian data to actually adding fuel to fire, ECB's Weber gets up and is being hawkish at ZEW earlier. Weber signals that the European Central Bank's monetary policy remains very accommodative despite the June 8 interest rate increase.

'The monetary policy of the Eurosystem remains very accommodative even after that.' said Bundesbank President Axel Weber

Indicators show that the euro zone economic recovery is gaining 'breadth an durability', with the latest economic projections signalling the speed of economic recovery would match the potential rate of growth in the medium-term. The Fed will pause and the ECB will continue to hike. At this point, it doesn't need me to say about the future currency market.

This is the toughest month in the fx market as the sentiments of the major markets remain unsure and uncertain of how far would the Fed go. Barrage of questions very questioned by traders from worldwide regarding this question. I made another box trading of $20 earlier today and I missed it by 8 pips... Yeah, so indirectly I'm saying I lost $20 bucks from box trading. This is where my problems arise, imbalances of my margin starts to occur as I don't have any margin left to make new trades to balance my EUR/USD. I was forced to make another tough decision in trading as I decides to close ALL of my USD/ZAR trades with HEAVY LOSSES. 3 trades accumulated costs me $52.34. You think that's the end? I wish... I wasn't left with ANY margin even with these 3 trades closed. Even with heavy losses, I felt so much better to get the prick out of my ass after it's been stuck for so long. I closed another 3 of my EUR/USD trades which cost me another of $12.49. Total losses? I $-84.83. What a day... I took 2 USD/CHF trades to balance my trade from EUR/USD and finally took another EUR/USD trade at a lower price. Because I'm seeing that the Fed's hike is fully priced in and might cause a temporary drop instead of a hike but the main event would be Bernanke's speaks after the FOMC Rate decision where he'll signal for higher interest rates, or not. A pause or dovish speech from him will totally reverse the USD sentiment.

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Trades Completed/Closed
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Short USD/ZAR X 3

Long EUR/USD X 2

Adding both up would be $-84.83, I wouldn't want to use pips this time because the number would be frightening. I would say at least a negative of 5-figure pips.

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Existing Trades
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Long USD/CHF @ 1.2501

Long USD/CHF @ 1.2520

Long EUR/USD @ 1.2523

Long EUR/USD @ 1.2820

Long EUR/USD @ 1.2960

I'll try scalping the market with high leverage aiming for 15 pips per trade on range trading days hoping to slightly compensate my huge losses today. I have made these painful decisions in order to trade another day. Hopefully I'm able to recover from this painful experience. It just sucks to be where I am now...