Forex: S&P 500 Struggles to Exploit Breakout, Yen Crosses Holding
• The S&P 500's 1,850 break was the day's most eventful market move, but follow through failed quickly
• In measuring the true risk impact, Emerging Markets were stirred but Yen crosses corroborate 'risk on'
• Sentiment trends remain stubborn, but what if risk aversion or stimulus withdrawal were to hit?
What kind of Trading best suits you? Technical or Fundamental? Short-term or Long-term? Take our Trader Survey and find out.
The 'risk on' headline generators are heating on the S&P 500's break to record highs. Yet, the refrain from FX and credit markets to the 1,850 break has kept momentum under wraps. The US equity index would end this past session notably off its highs and back below the record-high range resistance it fought so hard to overtake. A breakout from even this benchmark does not carry the necessary heft to change the market's tide - not from fear to greed, but passive to proactive. Going forward, FX traders should keep tabs on US equities' progress, Emerging Market event risk, monetary policy speculation and key setups like EURUSD's nested wedge formation. We cover these and more in today's Trading Video.
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.