EUR/USD down at 1.3585, off the best part of a big figure from where I left it Monday. We seem to have experienced a classic risk aversion play. Asian stocks hit, oil spiking, US treasury yields lower, dollar, swissy and yen benefitting in the currency markets etc etc.
Obviously the Middle East/North Africa turmoil is the main driving factor. Spiking oil prices are increasing worries over global recovery/growth. Other contributing factors will be the New Zealand earthquake and the Iranian naval ships in the Suez canal (worries about Israel’s response.)
Reports have Asian sovereigns buying around session low 1.3560 and we can probably expect more of the same on any appreciable dips. Stops seen through 1.3550 and more through 1.3525.
No major euro zone data releases today.
European stocks look set to get off to a sticky start. Major markets look likely to start down around 0.5-0.6%.
