3 Feb 2014
Session recap: Risk aversion fuels Yen and USD rises; EUR/USD holds levels
FXStreet (San Francisco) - Risk aversion was the day's tone as market was reluctant to take positions following the weaker than expected US ISM manufacturing data. A bloodbath in stocks and Yen crosses. The EUR/USD remains looking to the other way.
"Why the slide in risk sentiment?" asks FXBeat's analyst Jamie Coleman in a recent piece: "Because it appears that the market is pricing in the worst of all worlds: A slowing US economy at a point in time when the Fed wants out of the extraordinary stimulus game."
The EUR/USD performed its first positive day since January 23 after the Euro bounced at 1.3475 to recover the 1.3500 area and close at 1.3540. However FXStreet's analyst Valiera Bednarik says that the Euro is weak: "The risk aversion environment prevents EUR/USD from gaining despite local PMIs were mostly up beating, taking some of the pressure off ECB for their upcoming meeting."
Bednarik comments that "the hourly chart shows a slightly positive tone as per indicators heading higher in positive territory and price above its 20 SMA, albeit sellers will likely surge on approaches to 1.3550 strong static resistance area."
The GBP/USD extended decline for fifth day with the cable trading at lowest since December 18 at 1.6288. The Sterling has lost 330 pips since January 28 high of 1.6625. hourly and 4-hour charts are showing strong bearish chart.
"Why the slide in risk sentiment?" asks FXBeat's analyst Jamie Coleman in a recent piece: "Because it appears that the market is pricing in the worst of all worlds: A slowing US economy at a point in time when the Fed wants out of the extraordinary stimulus game."
The EUR/USD performed its first positive day since January 23 after the Euro bounced at 1.3475 to recover the 1.3500 area and close at 1.3540. However FXStreet's analyst Valiera Bednarik says that the Euro is weak: "The risk aversion environment prevents EUR/USD from gaining despite local PMIs were mostly up beating, taking some of the pressure off ECB for their upcoming meeting."
Bednarik comments that "the hourly chart shows a slightly positive tone as per indicators heading higher in positive territory and price above its 20 SMA, albeit sellers will likely surge on approaches to 1.3550 strong static resistance area."
The GBP/USD extended decline for fifth day with the cable trading at lowest since December 18 at 1.6288. The Sterling has lost 330 pips since January 28 high of 1.6625. hourly and 4-hour charts are showing strong bearish chart.