Disappointing US CPI drowns Big Ben.
Finally one free day where I can really update myself of the world economics and political issues. My trade was stopped and I was left sidelined until 12am EST where I took EUR/USD based on the closing price. I made analysis and found out that inflation is slower compared to the previous month and the housing slowdown is definately not the end yet, in fact I'm seeing continuous slowdown for at least another 3 months.
I got it right with the CPI and the housing reports. Consumer prices in the U.S. rose at the slowest pace in five months while home construction fell and industrial production climbed less than expected, validating the Federal Reserve's assertion that interest rates are high enough to slow the economy and tame inflation. Prices excluding food and fuel rose 0.2 percent, down from 0.3 percent in June, the Labor Department said today in Washington. Homebuilding dropped to the lowest in almost two years, the Commerce Department reported, and the Fed said output at factories, mines and utilities expanded 0.4 percent, half as much as in June. Furthermore, idustrial production in the U.S. grew less than forecast in July as factories churned out fewer automobiles and parts, a Federal Reserve report showed today. The 0.4 percent increase in output at the nation's factories, utilities and mines followed a 0.8 percent gain in June, the Fed said in Washington. The proportion of industrial capacity in use rose to 82.4 percent, the highest since June 2000, lifted in part by a surge in electricity demand during July's heat wave.
I'm now holding EUR/USD tight and continuously taking new trades with the profits I am making now. I'm still using maximum leverage to trade and will me seeking to place a new trade every 50 pips movements upwards. Things are still looking good and I'm expecting further consolidation by the 12-nation currency tomorrow as Euro CPI will be reported tomorrow and from the PPI which were reported a couple of days earlier, I'm expecting inflation numbers and expecting the ECB to raise interest rates again early next month.
Happy Trading.
I got it right with the CPI and the housing reports. Consumer prices in the U.S. rose at the slowest pace in five months while home construction fell and industrial production climbed less than expected, validating the Federal Reserve's assertion that interest rates are high enough to slow the economy and tame inflation. Prices excluding food and fuel rose 0.2 percent, down from 0.3 percent in June, the Labor Department said today in Washington. Homebuilding dropped to the lowest in almost two years, the Commerce Department reported, and the Fed said output at factories, mines and utilities expanded 0.4 percent, half as much as in June. Furthermore, idustrial production in the U.S. grew less than forecast in July as factories churned out fewer automobiles and parts, a Federal Reserve report showed today. The 0.4 percent increase in output at the nation's factories, utilities and mines followed a 0.8 percent gain in June, the Fed said in Washington. The proportion of industrial capacity in use rose to 82.4 percent, the highest since June 2000, lifted in part by a surge in electricity demand during July's heat wave.
I'm now holding EUR/USD tight and continuously taking new trades with the profits I am making now. I'm still using maximum leverage to trade and will me seeking to place a new trade every 50 pips movements upwards. Things are still looking good and I'm expecting further consolidation by the 12-nation currency tomorrow as Euro CPI will be reported tomorrow and from the PPI which were reported a couple of days earlier, I'm expecting inflation numbers and expecting the ECB to raise interest rates again early next month.
Happy Trading.
posted by 4xTrader at
12:19 PM
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