Market Update for June 25

Yesterday was a choppy trading day in the euro. I traded twice yesterday. Both times after the reports I told you about in yesterday's report - German Ifo Business Climate Index at 04:00 EDT and US Q1 GDP at 08:30 EDT. As you can see from this 5 minute chart, it pays to wait 5 minutes after the data is released.

[image error] While I didn't catch huge moves, they add up. I'd rather hit a lot of singles and have a high batting average than hit a home run and strike out a lot. With a 50 to 1 leveraged account and trading 1,000,000 units, which requires $25,000 in margin, 10 pips generates $1000, 20 pips $2000, and so on. Do the math and you can see how much money there is to be made in the forex markets. All you need is the EUR/USD to go from 1.1200 to 1.1210 and there's your $1000.

On tap for today, we'll have more nonsense from Greece and a few news items. First up will be Swiss National Bank's Thomas Jordan speaking at 04:00 EDT. At 08:30 EDT, we have US inflation data, jobless claims, and personal income and spending data. Not quite sure which item will move the markets the most. I'll be waiting my customary 5 minutes before I decide what to do. The last item on the agenda will be US Services PMI at 09:45 EDT. Expectations are for a reading of 56.7 in June, up from 56.2 in May.

We'll see how today plays out. The euro has really been on a roller coaster this week. I honestly have no clue were it's heading next and neither does anyone else. I'll stick to my game plan and monitor the data. That's the best bet for a forex trader in these markets. As always, good luck and happy trading!