Risk aversion drives the markets as traders await Crimea vote this weekend
City Index March 14, 2014 1:07 PM
<p>A vicious drop in risk late in trading yesterday after Draghi’s comments about forward guidance will help to curb euro strength. This shows that the intentions […]</p>
A vicious drop in risk late in trading yesterday after Draghi’s comments about forward guidance will help to curb euro strength. This shows that the intentions of the ECB are to keep an eye on the increasing euro strength at its highs this year at the time, and will try to keep it low to help recovery and inflation issues.
Another risk aversion story is still the worrying signs about China’s slowdown and the need for stimulus looms as investments slow. In Ukraine things are heating up after US Secretary John Kerry threatened to take ‘serious steps’ over the Crimea vote, which is to go ahead this weekend.
With the same news headlines leading risk off and safe haven trades all this week, it looks to be more of the same today and over the weekend. The thing to watch is the Crimean vote and if any actions are announced by the US or EU.
Supports 1.3825 1.3745 1.3677 | Resistance 1.3900 1.3965 1.3985
Supports 101.50 101.20 100.75 | Resistance 102.25 102.50 102.90
Supports 1.6605 1.6585 1.6505 | Resistance 1.6640 1.6685 1.6715
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