Eurozone failed to provide supportive data, US Real Estate sets new record for the year.
The week finally kicks off with the much anticipated FOMC meeting which will start this Wednesday where the 2-Day Meeting begins. Euro has begin the day with a rally upwards reaching as much as 80 pips after European Central Bank officials indicated the bank may step up the pace of interest-rate increases to keep inflation in check. The rally kicks off during the late Asian Session and continued to remain strong at 1.2560 zone. A fundamental channel was formed after the prices stabilized as the market awaits the highlight of the day which is the May New Home Sales.
The only data to support the Euro was reported disappointing as the French Business Confidence Indicator unexpected drop to 107 from 108 in the previous month. The drop in the French Business Confidence halt the rally of the EUR/USD from reaching 1.26. The indicator reflects the level of positive business leader opinion on the overall output outlook, their own output outlook, past production, inventories and order books. So, that's not really good for the Euro isn't it?
For the Real Estate Biz in the US, the sales set a record to the highest this year as buyers found greats deals offered in the market as it's filled with unsold homes. Sales increased 4.6 percent to an annual rate of 1.234 million from a pace of 1.180 million in April that was lower than previously reported, the Commerce Department said today in Washington. There were 556,000 homes for sale at the end of May, compared with a record 560,000 units the prior month. Another attraction is that builders are offering lots of 'priviledges' to these new home buyers such as free country club memberships and luxury car leases to lure buyers put off by rising mortgage rates. However The gain in sales confirms the Federal Reserve's forecast that the slowdown in housing won't be abrupt and may prompt policy makers to continue their string of interest- rate increases beyond this month. So, what the heck? Doesn't really moves the price much anyway.
There'll be plenty more of data to be release tomorrow and the highlights for the day would be German IFO Business Activity, US Consumer Confidence and US Existing Home Sales. German IFO's consensus is slightly lower than the previous month but I'll be expecting a number higher than consensus as a support to the 12-nation currency which means a number higher than 105. For the US Consumer Confidence, as much as I hate it to be dollar supportive but my analysis would match consensus or higher than expected as well. Existing Home Sales would deteriorate as with the New Home Sales setting up with new record and being offered with so many good incentives coming with it. Higher interest rates is one of the factor that's affecting the real estate industry in the country and that would be a turn off to buy a 'used' home and high mortage price. Well, at least that's what I think.
I took profit on the a EUR/USD after new home sales report were higher than expected and I didn't know how would the result would move the market. I took it with a slight profit without risking to lose all the profit. My bias still stand for Euro bullish and am ready to continually trade trades in EUR/USD. For USD/CHF, I might make intraday trades to scalp some profits to cover my losses in ZAR previously. One problems comes after another, and I hope to my ZAR trades would be the last mistake, AT LEAST for the time being.
=====================
Completed/Closed Trades
=====================
Long EUR/USD @ 1.2523, Closed @ 1.2546
=============
Existing Trades
=============
Long EUR/USD @ 1.2545
Long EUR/USD @ 1.2860
Long EUR/USD @ 1.2960
Long USD/CHF @ 1.2480
Long USD/CHF @ 1.2501
Long USD/CHF @ 1.2520
The Euro seems to continue the rally now after the New Home Sales report. This proves that the support for EUR/USD is strong enough to withstand these hits from US. Hopefully it'll maintain. Things just ain't right for the EUR/USD without hitting 1.3. I'd really hope to see that soon. But not gonna expect this to happen until Ben Bernanke decides to pause the rate...
The only data to support the Euro was reported disappointing as the French Business Confidence Indicator unexpected drop to 107 from 108 in the previous month. The drop in the French Business Confidence halt the rally of the EUR/USD from reaching 1.26. The indicator reflects the level of positive business leader opinion on the overall output outlook, their own output outlook, past production, inventories and order books. So, that's not really good for the Euro isn't it?
For the Real Estate Biz in the US, the sales set a record to the highest this year as buyers found greats deals offered in the market as it's filled with unsold homes. Sales increased 4.6 percent to an annual rate of 1.234 million from a pace of 1.180 million in April that was lower than previously reported, the Commerce Department said today in Washington. There were 556,000 homes for sale at the end of May, compared with a record 560,000 units the prior month. Another attraction is that builders are offering lots of 'priviledges' to these new home buyers such as free country club memberships and luxury car leases to lure buyers put off by rising mortgage rates. However The gain in sales confirms the Federal Reserve's forecast that the slowdown in housing won't be abrupt and may prompt policy makers to continue their string of interest- rate increases beyond this month. So, what the heck? Doesn't really moves the price much anyway.
There'll be plenty more of data to be release tomorrow and the highlights for the day would be German IFO Business Activity, US Consumer Confidence and US Existing Home Sales. German IFO's consensus is slightly lower than the previous month but I'll be expecting a number higher than consensus as a support to the 12-nation currency which means a number higher than 105. For the US Consumer Confidence, as much as I hate it to be dollar supportive but my analysis would match consensus or higher than expected as well. Existing Home Sales would deteriorate as with the New Home Sales setting up with new record and being offered with so many good incentives coming with it. Higher interest rates is one of the factor that's affecting the real estate industry in the country and that would be a turn off to buy a 'used' home and high mortage price. Well, at least that's what I think.
I took profit on the a EUR/USD after new home sales report were higher than expected and I didn't know how would the result would move the market. I took it with a slight profit without risking to lose all the profit. My bias still stand for Euro bullish and am ready to continually trade trades in EUR/USD. For USD/CHF, I might make intraday trades to scalp some profits to cover my losses in ZAR previously. One problems comes after another, and I hope to my ZAR trades would be the last mistake, AT LEAST for the time being.
=====================
Completed/Closed Trades
=====================
Long EUR/USD @ 1.2523, Closed @ 1.2546
=============
Existing Trades
=============
Long EUR/USD @ 1.2545
Long EUR/USD @ 1.2860
Long EUR/USD @ 1.2960
Long USD/CHF @ 1.2480
Long USD/CHF @ 1.2501
Long USD/CHF @ 1.2520
The Euro seems to continue the rally now after the New Home Sales report. This proves that the support for EUR/USD is strong enough to withstand these hits from US. Hopefully it'll maintain. Things just ain't right for the EUR/USD without hitting 1.3. I'd really hope to see that soon. But not gonna expect this to happen until Ben Bernanke decides to pause the rate...
posted by 4xTrader at
11:53 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home