three major US economic reports today turned out worse than expected.

U.S core Durable good orders  - (which is the Change in the total value of new purchase orders placed with manufacturers for durable goods)

Unemployment Claims (the number of out-of-work Americans receiving unemployment checks ) and New Home Sales have all printed worse numbers than was expected by market participants.

This in return has brought back risk aversion into the market with the expected outcome of buying pressure on the Dollar and the Japanese Yen.

EURUSD is already trading under 1.3 - next support level is set around 1.2870.

UDSJPY- did not manage to hold its head above 90, but was also not able to trade too far under that level. A long position is not recommended until the pair was clearly able to breach 90.

Interestingly the British Pound had managed so far to hold  previous gains compared with its counterparts, GBPUSD has advanced  to target 1.43 , and just take a look at EURGBP making its  biggest one day fall since the start of the down correction 4 days ago.

Another interesting take on the Pound: George Soros - the legendary investor who had shorted the sterling  on “Black Wednesday” in 1992 making over 1 billion dollars in profits out of the trade has recently announced he is no longer taking the short side of the Pound. I am sure many investors are reconsidering their shorts solely based on George’s words.

Z.Georgi

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