USD tries to get back on track... Consolidation period maybe?
With the thin data on the calendar today, not much of action is seen throughout the market for EUR/USD and USD/CHF during the Asian Session and the early London session. I guess it's the left over mixed feeling over traders on whether they should persue for the bull USD or bull EUR. They made their decision, and the greenback bulls won.
The German Trade Balance and the French Industrial Production for the month of May came out positive and supportive to the 12-nation currency as German trade Balance reported a higher surplus of 12.9B vs. 11.2B the previous month. Consensus was 11.5B. Industrial production in France, Europe's third-biggest economy, rose the most in six months in May as exports gained and lower unemployment helped fuel domestic spending. Factories, utilities and mines raised production by 2.0 percent from April, when it fell 1.4 percent, Paris-based national statistics office, Insee, said today. Economists expected a gain of 1.3 percent, according to the median of 28 estimates in a Bloomberg News survey.
All of these don't really matter as investors and traders are not back into expectations of another 25 bps hike from the Fed this coming August. Inventories at U.S. wholesalers grew a stronger-than-expected 0.8 percent in May as higher stocks of petroleum and professional equipment offset leaner automotive inventories, a government report showed today earlier.
I'm not ruling out the possibility or another hike from the Federal Reserve but chances are unlike. Few of the aspects that we should consider now and keep our attention on will be the CPI, core CPI, GDP, Trade Balance, and Employment status for the country for further inflation signals. Technically for the current view, EUR/USD is still well supported at 1.2700 and a breach below that would be further drop in Euro. We'll be seeing more gain in the USD as traders is being bullish on USD now with intereal rates in talk. One way to kill those day-dreamers would be weaker economic data report in the US signalling slower growth as the Fed is finally giving consideration on this issue. Range trading is a high probability for this week with plenty of Euro data and hopefully positive ones are able to withstand the bullish USD until we see some weakness. I took profit on my EUR/USD 1.2770 trade with only 5 pips profit earlier since I saw the drop would be aggresive. No point holding a negative trade since I could take it once again if Euro comes back up.
For my demo, I was trapped once again buying at 1.2810 with 8.9 million units. I'll not consider taking any losses for the pair at the moment as this week we'll see plenty of Euro data and possibly being supportive enough to push the 12-nation currency back up. It's been quite a hectic day considering the thin data release on Monday.
============
Existing Trades
============
Long EUR/USD @ 1.2820
Long EUR/USD @ 1.2960
Long USD/CHF @ 1.2480
Long USD/CHF @ 1.2501
Long USD/CHF @ 1.2520
The German Trade Balance and the French Industrial Production for the month of May came out positive and supportive to the 12-nation currency as German trade Balance reported a higher surplus of 12.9B vs. 11.2B the previous month. Consensus was 11.5B. Industrial production in France, Europe's third-biggest economy, rose the most in six months in May as exports gained and lower unemployment helped fuel domestic spending. Factories, utilities and mines raised production by 2.0 percent from April, when it fell 1.4 percent, Paris-based national statistics office, Insee, said today. Economists expected a gain of 1.3 percent, according to the median of 28 estimates in a Bloomberg News survey.
All of these don't really matter as investors and traders are not back into expectations of another 25 bps hike from the Fed this coming August. Inventories at U.S. wholesalers grew a stronger-than-expected 0.8 percent in May as higher stocks of petroleum and professional equipment offset leaner automotive inventories, a government report showed today earlier.
I'm not ruling out the possibility or another hike from the Federal Reserve but chances are unlike. Few of the aspects that we should consider now and keep our attention on will be the CPI, core CPI, GDP, Trade Balance, and Employment status for the country for further inflation signals. Technically for the current view, EUR/USD is still well supported at 1.2700 and a breach below that would be further drop in Euro. We'll be seeing more gain in the USD as traders is being bullish on USD now with intereal rates in talk. One way to kill those day-dreamers would be weaker economic data report in the US signalling slower growth as the Fed is finally giving consideration on this issue. Range trading is a high probability for this week with plenty of Euro data and hopefully positive ones are able to withstand the bullish USD until we see some weakness. I took profit on my EUR/USD 1.2770 trade with only 5 pips profit earlier since I saw the drop would be aggresive. No point holding a negative trade since I could take it once again if Euro comes back up.
For my demo, I was trapped once again buying at 1.2810 with 8.9 million units. I'll not consider taking any losses for the pair at the moment as this week we'll see plenty of Euro data and possibly being supportive enough to push the 12-nation currency back up. It's been quite a hectic day considering the thin data release on Monday.
============
Existing Trades
============
Long EUR/USD @ 1.2820
Long EUR/USD @ 1.2960
Long USD/CHF @ 1.2480
Long USD/CHF @ 1.2501
Long USD/CHF @ 1.2520
posted by 4xTrader at
12:29 PM
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