Kit Juckes, Research Analyst at Societe Generale, notes that the yesterday afternoon’s release of soft US new home sales for January (and a soft Markit services PMI) stopped the dollar’s rally in its tracks somewhat, with EUR/USD crawling back over 1.10 and even GBP/USD finding a modicum of short-term stability. Key Quotes “A USD 1.5pbl jump in oil prices during the afternoon helped equities and higher-beta currencies. The result is that this morning, despite a 6% fall in the Shanghai composite index, and a small fall back in oil prices, FX markets are pretty quiet for a change. The soft US data played a major role in stopping G10FX trends in their tracks. That places a bit more importance on the data in the days ahead and today we see jobless claims (exp 265k) the Kansas Fed index and durable goods orders (exp a bounce across the board, led by aircraft orders, with ex transportation +1.5% vs. -1% last month). If the data are robust, EUR/USD will break back below 1.10 and resume its cautious journey towards 1.08.” For more information, read our latest forex news.