Pipcrawler

We will close half of our position at .6870 to lock in +10 pips for half of our position. As we approach the end of the Euro trading session, price action continues to stall even after oil prices drop as oil inventories remain high. We will move our stop to…

Our trade was stopped out at 1.5350 on falling oil prices this morning. With oil diving this morning to 54 dollars a barrel, I’m looking for USD to rise in the wake of this. Oil traders will continue to watch weather reports for any cold snaps to drive up prices, so keep an eye out for that. Stay tuned for a possible trade idea on this morning events, but for now we took -45 pips loss if you jumped in at the same price I did.

Well, the market was expecting 100K (actually most were expecting much less after the ADP report came out at -40K), but the Non-Farm Payrolls report came out at a whopping 167K new jobs created in December! Crazy! This number blew everyone away and the dollar dropped almost 100 pips on EURUSD.

ISM Non-Manufacturing numbers came out with less than stellar number of 57.1 versus 58.9 in November. That number definitely shows growth in the month of December, but at a slower pace. The market’s reaction to the number was very “unspectacular”, so I have decided

It looks like dollar bullishness just continued at full steam as the greenback continued its rally and stopped out our trade. GBP/USD dropped almost all the way to 1.9400 before we finally saw a retracement of 50 pips. Also, we got no help as GBP PMI came out slightly better at 60.6. So, I was a little bit off in my timing in that I was looking for a retracement then dollar rally, but instead we got further dollar rally, then retracement…doh!

We saw a rebound today in ISM Manufacturing Index when it came in at a surprising 51.4 versus the consensus of 50.0, showing slight growth in December from November. Also, the ISM manufacturing prices paid came in at 47.5 versus the consensus of 54.0 – this reflects slower demand and a let-up in raw material pressures.

The second half of our trade stopped out at breakeven, so we gained +29 pips on the first half from our Euro session trade. We have ISM manufacturing coming out in the next ten minutes, and with the dollar rebounding during the Euro trading session on speculation of a stronger ISM number, I’m looking to go long to stay with the breakout and current short term dollar bullishness. I will wait for the ISM numbers to released and see if there are any viable short term setups.

With such strong positive US data today, I have decided to close the trade since the reports came out against my short dollar bias and the pair will probably continue to linger around 1.9600 price area for the rest of the day. The current market rate is approximately 1.9595 -You may close yours out at your descretion. This will be the last trade of the week as there are no significant reports lined up tomorrow….

Too bad we couldn’t finish the year out strong, but I am very hopefull for 2007….

Tomorrow morning we have a slew of economic reports coming out of the US – most notably the , , and the Chicago PMI (Big Pippin did a great job with a in his post today of all three reports). Basically, the forecasts are calling for strong numbers and we may see a continued end of year rally in the greenback.

We saw disappointing data from Canada this morning as retail sales came out at -0.7% versus the forecast number of -0.4% and GDP came in at 0.0% versus the forecast of 0.1%. So, we saw USD/CAD jump up 30 pips shortly after the report, stopping out the second half of our trade at 1.1515. So, for those of you who didn’t get to move your stop to breakeven after pt1 was hit – like me – we made +20 pips on the first half and -35 pips on the second for a total of -15 pips.