Forex: EURUSD and Yen Crosses Tumble, Is This The Turn?
• Risk trends slumped with the S&P 500 leading equities to short-term breaks and yen crosses dropping
• There was, however, a lack of uniformity in the severity and participation of the sentiment move
• Outside the larger currents, ECB Draghi's warning reversed EURUSD at a critical technical level
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One of the most resilient FX pairs to the ebb and flow of risk trends - EURUSD - dove this past session alongside notable technical breaks from equity indexes. Is this an indication of a definitive shift in sentiment and build in momentum needed to generate a reversal in speculative positioning? Or is this another false start? On the risk front, there were certainly strong showings from equities, yen crosses and high-yield assets. Yet, other benchmarks at the extremes of the risk curve were little moved. EURUSD meanwhile found its impetus from unexpected ECB threats made towards the euro. If this swell is to turn into a tsunami - and we be presented with more lucrative trends - we should see the evidence in the coming trading days. We talk about the market's recent moves and the outlook in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.