The Advisor Weblog

Second round of US data
Hourly perspective for US session
First round of US data
Best pair to trade now: GBP/USD
Majors’ sentiment for today
Starting the day

Posted: 25 Aug 2010 07:03 AM PDT

This time New Home Sales come out at 276K compared to past month 330K reading, again very very disappointing data: if I’m not wrong, is yet another record low. Stocks spiked to the downside, yet no much more reaction yet across the board. Dollar is in trouble no doubts.

Hourly perspective for US session

Posted: 25 Aug 2010 06:18 AM PDT

Here is the hourly perspective updated for the US session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2010-08-25.v02.html

First round of US data

Posted: 25 Aug 2010 05:33 AM PDT

US Durable Goods Orders come out much worse than expected at 0.3% against a 2.9% increase expected, while previous month reading was also revised to the downside to -1.2%, while core orders printed aterrible -3.8% and previous reading was also revised down to -0.9%. US stocks are crashing with the readings, and USD/JPY will probably follow. Euro and Pound are not reacting yet, but with this negative dollar data, will likely start a limited rise as at this point, no much strength in seen in any. Cad and Aud are accelerating loses against greenback.

Best pair to trade now: GBP/USD

Posted: 25 Aug 2010 04:37 AM PDT

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-08-25.html

Majors’ sentiment for today

Posted: 25 Aug 2010 04:33 AM PDT

Here is the majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Neutral

Usd/Chf: Slightly Bullish

Usd/Jpy: Bearish

Eur/Gbp: Bearish

Eur/Jpy: Bearish

Gbp/Jpy: Slightly Bearish

Starting the day

Posted: 25 Aug 2010 04:30 AM PDT

Hi everyone, and welcome back. wild day yesterday, with bad data weighting on all the major currencies: dollar was hit by really bad housing data, and we have another report from the sector today that has little chances of showing improvements.

The euro was hit by a revival of the sovereign debt issues in the euro zone: , S&P announced that Ireland’s long term credit rating has been cut to AA- from AA. The ratings agency also said that the nation’s outlook remain negative, suggesting that additional downgrades are possible. Adding to that Greek yield spreads soar to post crisis highs at 915 basis points, while IMF says it will engage with Hungary with a view toward bridging remaining differences related with austerity measures in the country. Despite earlier today IFO survey pushed the cross above 1.2700 again, falling stocks in Europe and America are keeping euro under pressure, back approaching to 1.2600. Watch the 1.2580 support zone, as under that level, pair could resume its bearish momentum.

Pound still holds above 1.5400 range bound yer, seems the downside is much more clearly exposed at this point. And Japanese Yen, I do still expect a lower low, without seeing much chances of a recovery in greenback against it. 83.35, June 1995 low is the key support if yesterday’s low gives up, ahead of 81.70.

Watch today’s calendar, as US data will surely make market jump:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!