Recap on 271006

Monday 301006 0730AM

A short recap for last Friday event:

9:30am CHF Leading Index m/m 2.00 (A) 2.25 (E) 2.32 (P)
Definition: Measures overall economic activity through a qualitative business survey about developments in the recent past, the current situation and expectations for the next three to six months. Survey questions relate to production, orders and stocks of finished goods. The Swiss Institute for Business Cycle Research (KOF) publishes this indicator monthly.

12:30pm USD GDP Annualized q/q 1.6% (A) 2.0% (E) 2.6% (P)
Definition: Gross Domestic Product (GDP) measures the total value of all goods and services produced by the economy. A rising trend has a positive effect on the nation's currency. GDP is the broadest measure of economic activity and considered to be the primary gauge of an economy's health. To foreign investors, a strong economy is viewed favorably because it spurs investment opportunities in the domestic stock and bond markets. A strong economy also persuades the central bank to raise interest rates in an attempt to control growth. All of this activity will increase demand for the nation's currency.

12:30pm USD GDP Deflator Annualized q/q 1.8% (A) 2.9% (E) 3.3% (P)
Definition: The Gross Domestic Product (GDP) Deflator measures the annualized quarterly implied rate of inflation for all economic activity. The deflator is used to calculate the difference between nominal and real GDP. The Federal Reserve takes special note of this indicator because it is the economy's broadest measure of inflation.
* Note Definition is for those Non-forex fundamental background.

In short, even though the personal consumption was a solid 3.1%, US GDP was soft. This lower GDP deflator and PCE reading eventually caused USD to weaken even further. After some comments by US Treasury Sec Paulson, USD did gain some ground, but, not enough to move the market as much as the GDP did on the USD.

Today's event:
13:30 GMT United States !!! Personal Income (MoM)
13:30 GMT United States !!! Personal Spending

The weird thing that really puzzle me is Paulson, Greenspan, and Fed all commenting on pretty normal for US to have all those weak number due to inflation and USD will strengthen eventually. Is this a reality in what they are saying or just a hoax to confuse investors? Another weird stuff is US did send troop to Saudi with classified purpose. I think i just forget about all this news, and just concentrate of what investors are practically telling me in my technical analysis.

I will be covering a special edition commentary on my experience at FreedomRocks tomorrow, due to my last day of evaluation. :D