Markets taking a breather from an exhausting week of swings
City Index October 17, 2014 2:09 PM
<p>A very volatile week in the FX space with some huge swings in the major currency pairs. With EUR/USD at the start of the week […]</p>
A very volatile week in the FX space with some huge swings in the major currency pairs. With EUR/USD at the start of the week around 1.2636 to as high as 1.2885 with a sharp drop back yesterday to a low of 1.2703, now back above 1.2800. Hard market to contain but the general direction is higher than the open but in need of deep pockets to hold onto these volatile drops and rallies. With a lot of concerns still coming out of the eurozone, the recent moves are more US dollar based as the markets try to decipher the next FED rate hike.
A similar story with the cable this week, but started off the week at around 1.6075 and we are currently trading 1.6085 with big swings in between. Cable made a low of 1.5873 on the 15th- an almighty fall from 1.6068. Again, a lot of this was due to the US dollar moves causing chaos in the FX markets as well as indices.
The markets may be taking a slight break from its overheating this week, but with all eyes on the USD at the moment and with Janet Yellen, the FED Chair, talking this afternoon it could be just as volatile. Some questions may be answered or, even worse, there will be more mixed messages sending the markets into chaos.
Supports 1.2705 1.2620 1.2600 | Resistance 1.2840 1.2885 1.2900
Supports 105.50 105.20 104.70 | Resistance 106.50 107.50 108.15
Supports 1.5940 1.5870 1.5850 | Resistance 1.6110 1.6130 1.6225
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