Forex: EUR/USD Absorbs US, Spain GDP but it's USD/JPY that is Overbought
The week's scheduled event risk peaked this past session with the release of US 4Q GDP, the FOMC rate decision and Spain GDP. And, though the data would normally spell trouble for EURUSD, we didn't see the negative implications to risk and a fresh face to the Euro-area financial crisis tame this pair's rally beyond 1.3500. In fact, despite the trouble we have seen; there is a fundamental support to this pair's climb. On the other hand, the long-term bull in USDJPY has seriously departed by its underlying bearings. We discuss the fair values of EURUSD versus USDJPY along with possible early signs of trouble in risk trends in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.