Forex: Euro Overbought, Yen Oversold, Just Add Risk
It isn't difficult to pick out those currencies that have outperformed and underperformed their peers. Over the past week, the Euro's rally has outpaced all counterparts; while the yen's drop was 1.7 percent larger than its closest competitor. That establishes EURJPY as the most overdrawn of the most liquid crosses. However, extremes can always grow more excessive. As has been the case for sometime, a rebalancing for EURJPY (or the euro, and yen-crosses broadly) requires a catalyst like risk trends. We talk about risk trends, EURCHF's incredible surge and USDCHF's return to the trading list in today's videos.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.