Upcoming Sessions (all times GMT)
• GBP Revised GDP (0830)
• USD Consumer Confidence (1400)
A late selloff of US equities has caused risk aversion to return to the markets as Asian and Pacific stock indexes have tanked. As such, riskier currencies across the board have sunk against the USD, with the AUD especially being hit hard. The Aussie slipped 1.0% in early trading session, to hit 0.8200.
The Euro fell for a second day in a row against the greenback as concerns rose that the European debt crisis is far from over. Yesterday the International Monetary Fund publically urged Spain to take stronger action towards helping its failing banks, reinforcing the notion the traders should short every EURUSD rally until concrete evidence emerges that the EU’s credit problems have finally stabilized.
The British Pound continued to slip against the U.S Dollars as investors grew more skeptical about the UK’s proposed budget cuts. However, with so many one sided positions in the market, the GBPUSD could very well reverse its latest downwards trend if today’s GDP is better than expected.
Beyond the intraday resistance of 1.4465, lies a strong resistance at the 1.4530 level.
Renewed global concerns about the European Debt Crisis and its single currency have once again pushed investors towards more “risk adverse” assets – namely Gold. This “safe haven” metal can also attribute some of its sudden gains to this morning’s New Zealand Inflation Expectation that was higher than expected. The 1200 is back in play, and any move above this key price could lead to follow through buying towards the 1225 level.
Written by Finexo.com