Commodity Currencies Tumbled on Worsening Outlook; France and Greek Elections to Trigger Breakout in EUR/USD Aussie, Kiwi, and to a lesser extend Loonie, were under much pressure last week on worsening global and domestic economic outlook. Selling further accelerated on Friday after the release of disappointing US job data, which triggered massive risk aversion and steep fall in equity markets. In addition, investors were seen nervous ahead of key event risks of France and Greece elections over the weekend. Japanese yen was the strongest currency as markets continued to express dissatisfaction over BoJ's quantitative easing program. Dollar was the second strongest currency last week but we must emphasize that the greenback was bounded in range against Euro, Swiss Franc and Sterling. There is no clear direction in dollar yet even though some might point to risk aversion as a dollar supportive factor. We'd require to see a decisive breakout in EUR/USD from recent range to confirm the underlying momentum in greenback, and that could possibly happen as reaction to the elections. Otherwise, we're just in markets of bullish yen, bearish commodity currencies, and mixed dollar. Full Report Here... | 
|
No comments:
Post a Comment