Yen Crosses Hang on Equities Next Move while Greece and RBNZ Kick In
• The general risk aversion slip this week was furthered with key levels on indexes and Yen crosses at hand
• An RBNZ rate decision ahead threatens volatility with a chance at greater clarity for direction
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With the Dollar held by the gravity of next week's FOMC decision, other fundamental themes are picking up the slack. The Euro is a coiled spring as the headlines continue to swing wildly between reports of a progress that suggests a deal is almost at hand and blunt assessments that a separation is inevitable. This past session, the stand out headline stated Greece had sent reform proposals that moved clsoer to its creditors' demands. The markets are skeptical and whiplash weary with FX traders refusing to mark the occasion with a sustained trend. Meanwhile, the risk focus is sharpening as the broad decline in global stock indexes threatens to ignite months of stockpiled speculative tinder. And, for something more definitive, the upcoming RBNZ decision carries serious debate as to whether the first rate cut in four years will be announced. We cover these themes and event risks 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.