Risk aversion drives the markets as traders await Crimea vote this weekend

<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.

 

EUR/USD

Supports 1.3825 1.3745 1.3677 | Resistance 1.3900 1.3965 1.3985

 

USD/JPY

Supports 101.50 101.20 100.75 | Resistance 102.25 102.50 102.90

 



GBP/USD

Supports 1.6605 1.6585 1.6505 | Resistance 1.6640 1.6685 1.6715

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.