The Revenge USD: Currency stays firm after Trade Balance Report.
The key indicator for the 12-nation currency, Germany's trade surplus fell to 11.2 bln eur in April from 14.4 bln in March and 12.7 bln a year earlier, according to provisional figures from the Federal Statistics Office. The expected consensus was 12.3 bln and was already expected lower than previous month. The industrial production fell below consensus as well. Meanwhile French's Trade Balance deficit widens more than expected together with Industrial Production and Manufacturing production was equally down as well. What was reported is definately not a good report for the currency... bad day for the Euro.
Trade balance for the US has widened as expected due to the high oil prices BUT the widen was much than expected which means their exports were more tha imports for the month of May. The price were contained at 1.2630 level for EUR/USD and USD/CHF traded slightly lower from the opening prices of the day. USD failed to rally today may be due to the increase of oil prices again after Iraqi oil officials were kidnapped after Al-Qaeda Leader Zarqawi was killed yesterday. Zarqawi's death will show more stability in Iraq. However, the kidnap of the oil official is to send a message " There's more of us who'll continue without Zarqawi. " This has spurred the oil back to $ 74 per barrel from $70 after the news is announced.
I'll be expecting to continue to take profit on my USD/CHF. One of them would be one of the initial trades I made using only 3% leverage at 1.2380. I'll be taking profit for 3 trades in USD/CHF @ 1.2430. Bringing me into slow recovery of my loss in gold. I will continue to persue EUR/USD trade and I will seek to buy the pair around 1.25 level. While ZAR raised interest rates, I doubt it would mean anything against the USD. What a pain in the ass currency. I will try to take profit at a level with a slight profit and will not touch that pair ever again. I will probably trade USD/MXN or NZD/USD for carry trades. With gold still on the downtrend channel, chances for AUS/USD and NZD/USD to gain against dollar would be pretty slim as both of these countries are well related with gold. I will expect gold to have further losses to $600 per ounce before resume the hike to $635.
Trade balance for the US has widened as expected due to the high oil prices BUT the widen was much than expected which means their exports were more tha imports for the month of May. The price were contained at 1.2630 level for EUR/USD and USD/CHF traded slightly lower from the opening prices of the day. USD failed to rally today may be due to the increase of oil prices again after Iraqi oil officials were kidnapped after Al-Qaeda Leader Zarqawi was killed yesterday. Zarqawi's death will show more stability in Iraq. However, the kidnap of the oil official is to send a message " There's more of us who'll continue without Zarqawi. " This has spurred the oil back to $ 74 per barrel from $70 after the news is announced.
I'll be expecting to continue to take profit on my USD/CHF. One of them would be one of the initial trades I made using only 3% leverage at 1.2380. I'll be taking profit for 3 trades in USD/CHF @ 1.2430. Bringing me into slow recovery of my loss in gold. I will continue to persue EUR/USD trade and I will seek to buy the pair around 1.25 level. While ZAR raised interest rates, I doubt it would mean anything against the USD. What a pain in the ass currency. I will try to take profit at a level with a slight profit and will not touch that pair ever again. I will probably trade USD/MXN or NZD/USD for carry trades. With gold still on the downtrend channel, chances for AUS/USD and NZD/USD to gain against dollar would be pretty slim as both of these countries are well related with gold. I will expect gold to have further losses to $600 per ounce before resume the hike to $635.
posted by 4xTrader at
1:52 PM
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