Your Currency Trading Profits

The Euro did not react overnight to weak French data. Taken in combination with the moves lower in the dollar versus the Japanese Yen and dollar against  the Swiss franc possibly implies that the US  dollar’s recent rally may be over.

The trade balance in the US was lower than expected. U.S. imports dropped the most in six years. In addition, the US had its first drop in exports in more than a year. The consumer is obviously cutting back on purchases. The weak dollar is making these purchases much more expensive.

Since food and energy prices are rising significantly, it stands to reason that consumers will have to cut back even more. This makes me bearish the US dollar. I’m still flat but I am looking for a good technical level to enter a short US dollar position. Other than that not much in the way news today or comments from government officials.

Good luck and good trading.

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