EUR/USD Retakes 1.3500 on Risk Hold, BoJ Leverages USD/JPY
All the technical and market condition elements were lining up for a serious reversal in EURUSD, the yen crosses and other risk-sensitive pairings. However, we couldn't secure the fundamental spark to complete the underlying trend shift: an actual risk aversion drive. Once again, the holdout to an otherwise broad shift in sentiment was the imperfect (and stimulus-laden) US equity indexes. Both the S&P 500 and Dow held conspicuous support levels which allowed for news of an ECB balance sheet reduction and BoJ Governor Shirakawa's accelerated retirement to bolster the heaviest pairs. These catalysts, however, are temporary. Unless individual events continue to print risk-supportive results, the specter of risk aversion will remain. We discuss this and more in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.