New home starts came in lower than anticipated today, 1.08mm actual versus 1.20mm expected. This pull back in new home starts appears to be what moved the dollar today. My guess is that not only does it reflect a slow down in the real estate market in the US but it also confirms the lower PPI and CPI that the economy may be slowing which would encourage no rate hike.
Many investors have felt that more rate hikes were coming up. The numbers showing no justification to a rate hike would decrease the demand for the dollar and the increased demand in gold.
I flipped the gold trade as explained earlier. My anticipation is that the run for gold could last a week or more. The surprising thing is we were not taken out of any of the other trades. I tightened the stops on all the trades and we will see where this goes now.
The EUR/AUD bounced back up and looks like it set up for another run. Hopeful hundreds of pips run like last time.
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