some bad news from Japan yesterday, an unprecedented slump in exports caused Japan’s economy to shrink by 3.3 percent – marking the sharpest fall since the oil crisis back in 1974.
In the forex market, this was an additional fuel for safe haven currencies.
EURUSD – as I expected yesterday, the break under the support level 1.27 has triggered an almost instant sell off to 1.26.
The pair is still very bearish this morning, and might attempt to test its next support area around 1.2554.
GBPUSD- at this moment the pair is reluctant to move any lower than 1.4150, but its is very likely to see 1.4 soon if the short term sentiment in the market will continue to support safe haven currencies.
Otherwise, a quick move back to 1.4350 might be in the cards.
Z.Georgi
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February 24th, 2009 at 9:35 pm
Hmm, interesting post. Wondering what site you did your researching through.
March 2nd, 2009 at 12:27 am
Great Post! I am loving it. Will come back again – taking your feeds also.