+320 pips: North Korea Missle Lauches support the US dollar once again.
A day with a totally unexpected event that North Korea launched at least 6 ballistic missiles that ends up to in the Sea Of Japan. Morning in Asian market is quite a chaos starting with plunge in the stock market and the currencies in the zone where risk aversion traders are switching their money intially to gold then to the US dollar seeking safe haven. Much of the fundamental didn't really played they role today as the market's concentration are mostly focused on latest development on the North Korea launching missle crisis. North Korea was given warning from several 'big shots' inclusing China, and United States saying the action could be extremely provocative and the latest missile Taepodong 2 rocket potentially reaching Alaska from North Korea although it only survived 45 seconds after the launch before ending up as another collection in the Sea Of Japan.
The good Eurozone data and the promising decision from the ECB Rate Decision tomorrow doesn't seem to matter anymore as North Korea and fundamentals release from the US zone had outshoned the expectations from the Eurozone. PMIs from Eurozone were overall better the expected beating consensus except for Italy. The Eurozone PMI was reported highest since June 2000 failed to bring Euro back up from the fall. However at the moment like this where everyone's paying attention for bearish signals for the Euro currency, the Eurozone Retail Sales for the month of May fell -0.6% from April. Another reason to sell the Euro, so they say...
For the fundamentals coming out from the United States, Factory Orders reported higher than consensus for the month of MAY, up +0.7% and EX-Defence New Orders +0.8%.Another supportive dollar statement from private report based on payroll data estimated U.S. companies added 368,000 jobs in June, the most since 2001. The report comes two days before the government releases its monthly labor report. Today's report is compiled by Automated Data Processing Inc., the world's biggest paycheck processor, and Macroeconomic Advisers LLC in St. Louis. The company says there is a 90 percent correlation between its data and the government's private employment figures. Cheers and applauds were definately heard from the dollar bull traders as they once again having hopes again for another rate hike.
For my live account, I had to put stop loss to secure my earnings and prevent my losses as I see Euro has no intention of stopping the bear from attacking the 12-nation currency. Stops were triggered for 4 of my positive trades giving me 310 pips recording highest pip record ever earned in my experience with Oanda. Even though the money is not much after falling again and again from gold but it managed to compensate something in return. I'm not expecting ECB to hike rates tomorrow but a hawkish statement from the ECB President Trichet would definately bring traders back to support the currency.
For my demo, I had huge losses in the early London session where an unexpected turn after EUR/USD reached 1.2837 almost immediately incurred a loss of $15'000. However, I managed I placed another trade at 1.2770 after the feigning recovery and set a stop loss 1.2790, returning all my losses of the day with an extra of a few thousand bucks. It's been pretty great trading experience with high leverage and minimum to aim. But high gain has a potential to incur high losses as well.
=====================
Completed/Closed Trades
=====================
Long EUR/USD @ 1.2590, Closed @ 1.2730 ( +140 pips )
Long EUR/USD @ 1.2620, Closed @ 1.2730 ( +110 pips )
Long EUR/USD @ 1.2670, Closed @ 1.2730 ( +60 pips )
Long EUR/USD @ 1.2720, Closed @ 1.2730 ( +10 pips )
=============
Existing Trades
=============
Long EUR/USD @ 1.2770
Long EUR/USD @ 1.2820
Long EUR/USD @ 1.2960
Long USD/CHF @ 1.2340
Long USD/CHF @ 1.2480
Long USD/CHF @ 1.2501
Long USD/CHF @ 1.2520
At the current short term view, USD rally will most likely to be back to dominate the currency market with the North Korea tension, and Fed expectations back in discussions. As I sometimes really think and confused... How could we let something which happened 2 months ago in May determine on whether the Fed should raise interest rates in FUTURE. Anyone knows this answer please email me @ gohrayson@yahoo.com. It seems to me that this is 2 month laggish indicator which shouldn't have any major effects on the currency market. I think today's just another day when something happens unexpectedly and good data continues to support the greenback.
The good Eurozone data and the promising decision from the ECB Rate Decision tomorrow doesn't seem to matter anymore as North Korea and fundamentals release from the US zone had outshoned the expectations from the Eurozone. PMIs from Eurozone were overall better the expected beating consensus except for Italy. The Eurozone PMI was reported highest since June 2000 failed to bring Euro back up from the fall. However at the moment like this where everyone's paying attention for bearish signals for the Euro currency, the Eurozone Retail Sales for the month of May fell -0.6% from April. Another reason to sell the Euro, so they say...
For the fundamentals coming out from the United States, Factory Orders reported higher than consensus for the month of MAY, up +0.7% and EX-Defence New Orders +0.8%.Another supportive dollar statement from private report based on payroll data estimated U.S. companies added 368,000 jobs in June, the most since 2001. The report comes two days before the government releases its monthly labor report. Today's report is compiled by Automated Data Processing Inc., the world's biggest paycheck processor, and Macroeconomic Advisers LLC in St. Louis. The company says there is a 90 percent correlation between its data and the government's private employment figures. Cheers and applauds were definately heard from the dollar bull traders as they once again having hopes again for another rate hike.
For my live account, I had to put stop loss to secure my earnings and prevent my losses as I see Euro has no intention of stopping the bear from attacking the 12-nation currency. Stops were triggered for 4 of my positive trades giving me 310 pips recording highest pip record ever earned in my experience with Oanda. Even though the money is not much after falling again and again from gold but it managed to compensate something in return. I'm not expecting ECB to hike rates tomorrow but a hawkish statement from the ECB President Trichet would definately bring traders back to support the currency.
For my demo, I had huge losses in the early London session where an unexpected turn after EUR/USD reached 1.2837 almost immediately incurred a loss of $15'000. However, I managed I placed another trade at 1.2770 after the feigning recovery and set a stop loss 1.2790, returning all my losses of the day with an extra of a few thousand bucks. It's been pretty great trading experience with high leverage and minimum to aim. But high gain has a potential to incur high losses as well.
=====================
Completed/Closed Trades
=====================
Long EUR/USD @ 1.2590, Closed @ 1.2730 ( +140 pips )
Long EUR/USD @ 1.2620, Closed @ 1.2730 ( +110 pips )
Long EUR/USD @ 1.2670, Closed @ 1.2730 ( +60 pips )
Long EUR/USD @ 1.2720, Closed @ 1.2730 ( +10 pips )
=============
Existing Trades
=============
Long EUR/USD @ 1.2770
Long EUR/USD @ 1.2820
Long EUR/USD @ 1.2960
Long USD/CHF @ 1.2340
Long USD/CHF @ 1.2480
Long USD/CHF @ 1.2501
Long USD/CHF @ 1.2520
At the current short term view, USD rally will most likely to be back to dominate the currency market with the North Korea tension, and Fed expectations back in discussions. As I sometimes really think and confused... How could we let something which happened 2 months ago in May determine on whether the Fed should raise interest rates in FUTURE. Anyone knows this answer please email me @ gohrayson@yahoo.com. It seems to me that this is 2 month laggish indicator which shouldn't have any major effects on the currency market. I think today's just another day when something happens unexpectedly and good data continues to support the greenback.
posted by 4xTrader at
12:08 PM
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