Syrian tensions weigh on risk

<p>The S&P traded lower to 1976- just shy of the 38.2% retracement of the August to October rally- following the US led air strikes on […]</p>

The S&P traded lower to 1976- just shy of the 38.2% retracement of the August to October rally- following the US led air strikes on Syria. This led to concerns regarding the global growth picture with a break of the 1975 level seen as targeting 1935. The NZD outperformed in the Asian session after the New Zealand trade deficit came in much lower than the NZD 1.1 billion that was expected at NZ 472 million. The improvement was driven by higher exports and a decline in imports.

USD/JPY traded lower led by the declining Nikkei following comments from Japanese PM Shinzo Abe. He said that he wants to see the impact of the weaker JPY on regional economies before commenting on further stimulus measures. It seems that the Japanese authorities are now expressing reservations on the rapid decline of the JPY as these latest remarks from the PM echo those of Finance Minister Aso and the Economics minister Amari.

The German IFO business survey is the highlight this morning.  The markets will look for a weaker number of 105.70 following the sanctions placed on Russia as the US session will outline the latest new home sales data.



Supports 1.2820-1.2785-1.2750  | Resistance 1.2900-1.2930-1.2985



Supports 108.40-108.05-107.70 Resistance 109.00-109.45-110.00



Supports 1.6350-1.6285-1.6160  Resistance 1.6420-1.6460-1.6525



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