EUR/USD and EUR/JPY Face More Risk than Market Lets On
EURUSD climbed Monday on the back of a fundamental rally for the euro based on 'encouraging' developments in Italy's government formation and Greece's effort to receive its next round of stimulus. As encouraging as these events are, however, the market has learned to be very skeptical of positive developments in Europe's financial system. Negative surprises on the other hand can carry far more sway when it comes to moving the currency - particularly when the market makes no move to hedge the risk. Therein lies the risk in the upcoming Cyprus vote. We discuss this specific event risk along with adjustments to upcoming to risk-based exposure ahead of major fundamental developments (Fed rate decision, ECB rate decision, NFPs) in today's video.
Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.