The EUR/USD has dropped amid substantial gains from the dollar later yesterday and today. Once again, tensions in the Crimea have flared, with Russia mobilizing troops and preparing fro an invasion as the EU prepares condemnations an possible sanctions. The situation has escalated to the point where the dollar is being perceived as a safe haven – especially compared to the Euro. Consequently, the pair will have downward momentum until the situation in the Ukraine begins to deescalate. Be sure to pay attention to the US PPI data coming out at 12:30 GMT, as this could have a significant effect on the EUR/USD as well. Look for support at 1.3844 and resistance at 1.3876.
The USD/JPY has dropped substantially due to the crisis in the Crimea and a recent spat of bad Chinese data which has investors worried. As a primary safe haven asset, the yen rises in times of crisis and has been doing so for over a day. Consequently, the pair has continued to decline despite worse than expected Japanese industrial production data and better than expected US retail sales data. As the situation is still tense, it is unlikely that the yen will lose any of its appeal as a safe asset and thus the pair could continue to face downward pressure. Look for support at 101.49 and resistance at 101.87.
Related Posts: