Forex: More Cyprus Risk for EUR/USD, BoJ Transition a USD/JPY Event
The controversial terms of Cyprus' proposed bailout led to the biggest EURUSD and EURJPY bearish gaps in nearly a decade. Is this just a knee-jerk panicked reaction or is the revival of fear in a systemic financial crisis for the Eurozone? Only time and negotiations amongst Euro-area officials will tell. In the meantime, all the Euro pairs will be extremely sensitive and open to bouts of heavy volatility. However, don't become too fixated on the Euro. The BoJ power transfer could potentially stir the USDJPY and other yen crosses and risk trends are being pulled in different direction in the lead up to Wednesday's important Fed rate decision. We discuss these big fundamental themes and the trading implications in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.