Overview

The US dollar was softer against other major currencies in morning trading here after the release of weaker-than-expected data in the US overnight created more worry about the prospects for economic growth there. Sales of existing homes in the US suffered last month their largest decline since January 1989. The Conference Board reported that consumer confidence there had fallen more than expected this month because of higher prices for gas and broader concerns about the economy.

The EUR/USD pushed back up towards its historic highs around 1.3665 on the data??™s release. Investors will pay close attention to US data due to be released later today, including the new homes sales figures and durable goods orders figures for last month, for indications about the state of the US economy. With traders looking for any excuse to sell the greenback, tonight??™s data could just be the impetus to push the EUR to a new all-time high.

Data for today

US: Durable Goods Order

US: New Home Sales

For today:

- Sell USD/JPY around 118.80, with initial stops above 119.10. Or sell a break of 118.20, with stops above 118.40

For more ideas please email: tradingdesk@pinnacleforex.com