Forex: EUR/USD and GBP/USD Declines Contrast Risk Trends
The opening trading week of 2013 was more unusual than the natural crimp of thin liquidity would suggest. A temporary solution to the US Fiscal Cliff has generated serious, sentiment-based moves from the S&P 500 and VIX Index supporting a 'risk on' environment. That said, key pairs like EURUSD and GBPUSD have both retreated over that same period (to 1.3000 and 1.6000 respectively). Which benchmark is correct: US Dollar or US equities? Can either hold a trend with the fundamentals, technicals and market conditions immediately ahead of us? We discuss this and more in the weekend video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.