Risk sentiment turns very sour indeed
The bulled-up analysts got it wrong, initially at least, after yesterday’s election result and the Yen crosses have taken a hit after the ECB downgraded EU growth forecasts.
I’m still looking to start covering some of my AUD/USD shorts anywhere near 1.0370 but I remain very bearish on USD/JPY and I think we can see levels near 78.50 before things settle down.
We will take our lead today from Asian equity markets and with the S&P down by close to 3% at one stage, it’s likely that local markets follow to some degree.
EUR/JPY will be the lead pair in the FX market and after breaking below 102.15, it needs to reclaim that level in order to give the bulls some comfort.
wanted to ask on where the flows are coming from in ej.. please keep us posted. thanks
Hi Maji, lot of rumours in last few days re big EUR/JPY positions but no confirmation thus far.