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The Week's Closure…

Another week has come to an end in the Forex market, new data were revealed, and the truth we used to hold has changed, no more doubts about a rate cut in the next FOMC meeting; no more looking for a bottom in the housing market yet, no more carry trades with all the risks in the markets.
We all saw very frustrating housing data this week and even in the week before, hinting for nothing but even more dark future for the U.S. economy driven by the housing slump, and now even those who stood for the dollar before are now definitely against it. Both the fed's chairman and the vice chairman clearly hinted for investors for further policy easing in their next meeting on December 11, stating that the economical imbalances are just increasing with all the turbulence we see, and they are willing to mitigate those problems in the financial markets which affected consumer spending and the banking sector massively.Today, we are having the week closure with fed's favorite inflation gauge, the core yearly PCE is expected to remain well below the fed's comfortable range, 1.8% is the expected reading for the month of October on the year on year basis, the same levels we saw in September, still making the feds comfortable with any rate cuts they are making.Later today, we will be waiting for the Chicago Purchasing Mangers' index for the month of November, another measure for the manufacturing status in the United States, how badly it got affected by the market turbulence and the housing slump. Chicago PMI is expected to climb to 50.5 from 49.7 in October.Dear reader, more dollar weakness is still on the run as we can see, maybe investors are a little bit shy to sell more dollars now at those currencies levels, but trust me, when the wave starts again, new levels will be achieved, unless something major happens to prevent it, the dollar ship is sinking badly, and it's taking everyone on board down with it...