Euro, Yen and S&P 500 Present a Dangerous Calm
EURUSD has worked its way deeper into congestion just off four-month lows. This restraint is particularly remarkable given the heavy news flow surrounding Cyprus and the financial threat the country presents to the entire Euro-area. This tense and curious calm for the Euro is similar to what the broader market have faced. With speculators lacking direction on the Fed stimulus expectations, the dollar-based majors are left adrift. The yen crosses have lost a serious stabilizing factor for keeping the yen under pressure after BoJ Governor Kuroda backed off of immediately escalating stimulus efforts. And, all of this leaves the broader currency once again at the mercy of risk trends with the S&P 500 making an uneasy effort of avoiding an overdue correction. We discuss what all of this means for trading going forward in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.