EURUSD Extends Slide as Sentiment Sours, EURJPY and AUDJPY to Follow?
The dollar's post-FOMC advance continued this past session, but momentum flagged as rate ambitions and Treasury yield gains cooled. However, another - potentially more persuasive - catalyst may take its place: risk aversion. The S&P 500 put in for its second largest decline this year and in doing so has revived the fear that a larger shift in sentiment could erode capital markets and spur a painful bout of deleveraging. If that concern were realized, we have tremendous opportunities with pairs like EURUSD, AUDUSD and EURJPY amongst others. On the other hand, we have to respect the unusual market conditions that we will have to deal with over the final 48 hours of this trading week.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.