Another month, another bout of risk aversion. Poor German retail sales, fear of a return to deflation in Japan and jitters over India and Pakistan coming to blows in the wake last week’s terror attacks in Mumbai are all contributing to a general unwillingness to assume risk. Equities are down across the board this morning with some of the selling attributed to anticipation of another fall in ISM.
118..25 is first support for the cross with more substantial support down at 116.40. Offers lie at 119.25. We trade now at 118.40.
