EURUSD, AUDUSD and S&P 500 Take a Dive as Risk Collapses
The Fed's decision to deny the market QE3 was a disengaged hope and June's bullish push, left to fend for itself, the market was waiting for the next fundamental swell. That wave crashed over the market this past session with disappointing growth data for China, Europe and the US; a painful Spanish bond auction; and a round of downgrades for top banks from Moody's among other things. Without the buffer to negative event risk, disappointment easily infected the S&P 500, high yield currencies and fundamentally-troubled European assets (S&P 500, AUDUSD and EURUSD). Is this just a burst of volatility or a trend shift? We discuss that and a number of well-positioned pairs in today's video.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.