Talking Points:
- Risk aversion continues to show across global markets as driven by political volatility in Italy. At this point, it appears as though another round of elections are in the country’s future, and this has become a de facto referendum on Italy’s continued role in the Euro-Zone. Also of interest – Spanish Prime Minister Mariano Rajoy is headed for a no-confidence vote on Friday, so uncertainty reigns supreme around European politics at the moment.
- Yesterday was a holiday in the US and UK, and equity markets are playing catch-up after yesterday’s Euro-based selling. US equity futures are pointing towards a gap-down on the open, and this will keep themes of risk aversion in the spotlight for the immediate future. For currency traders – look to the Japanese Yen[1] for safe-haven plays, with particular interest around pairs like EUR/JPY[2] and GBP/JPY[3].
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
EUR/USD Sets Fresh Ten-Month Lows as Politics Steals the Spotlight
European assets continue to get hit[8] as markets attempt to price-in additional political risk from recent events in Italy. The difficult aspect of that is that this is a very fluid situation, and at this stage, we still
