The Advisor Weblog

Wall Street gains, dollar pays
Best pair to trade now: EUR/USD
Majors’ sentiment for today
German ZEW Survey
UK CPI triggers Pound rally
Starting the day

Posted: 18 Jan 2011 04:01 AM PST

Wall Street futures continues rising with S&P and the DJIA barely below September 2008 monthly highs, keeping dollar under pressure across the board. Euro and Pound soared to multi-week highs, while AUD tested parity, still unable to break higher.Canadian dollar, also supported by rising oil, quotes at a fresh 2 year low also around 0.9840, and clearly bearish.

Something a bit more interesting ahead of US opening, is the fact that both safe havens, CHF and JPY are still intraday up against dollar, with the crosses near daily low; a continued surge in stocks after US opening, could send both pairs up later today.

Best pair to trade now: EUR/USD

Posted: 18 Jan 2011 02:43 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/01/18/

Majors’ sentiment for today

Posted: 18 Jan 2011 02:08 AM PST

Majors’ sentiment for today:

Eur/Usd: Bullish

Gbp/Usd: Bullish

Usd/Chf: Bearish

Usd/Jpy: Bearish

Eur/Gbp: Neutral

Eur/Jpy: Bullish

Gbp/Jpy: Bullish

German ZEW Survey

Posted: 18 Jan 2011 02:03 AM PST

German ZEW survey show increasing confidence both in Germany and the euro zone, as economic sentiment improved strongly in both; German one jumped from 6.3 to 15.4, while European one also soared form 15.5 to 25.4; euro gaped to the upside, having reached so far an intraday high around 1.3428, and close to the level. Seems dollar will continue having a really bad day ;)

UK CPI triggers Pound rally

Posted: 18 Jan 2011 01:35 AM PST

Pound soars against most rivals after UK consumer price index come out at 3.7% from 3.3% expected, also past month reading. Core CPI come out at 2.9% against expectations of 2.6%, and GBP/USD jumped to 1.6035, and with current dollar weakness, 1.6100 area is now at sight.

Starting the day

Posted: 18 Jan 2011 01:00 AM PST

Hi everyone and welcome back! after a quiet consolidation holiday, dollar is back down across the board, with stocks strongly up in Europe at highs not seen since July 2008, as well as oil that reached $ 92.63 a barrel; the good momentum has also favored gold, that rose back to $ 1366/oz; key resistance area there comes around $ 1372.50. If above, expect further bullish momentum in the metal.

Anyway, market is waiting for inflation figures in the UK; a higher than expected reading, will only exacerbate the idea of a soon to came rate hike in the UK, favoring further gains in the currency; I will start my technical post after the news.

Here is the link for today's calendar:

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

Have a great day!