Currency markets have been moving by risk averse due to concerns over military strike of USA, France and UK against Syria. The Japanese Yen has been strengthening considered safer currency while Aussie and Sterling have been losing as riskier currencies, the Euro and the US dollar were mostly unchanged.
US equities closed with losses on Tuesday session with S&P 500 falling by 1.59% and the
Dow Jones Industrial Average declining by 1.14%. Asian shares followed also weighed by possible attack to Syria with NIKKEI 225 closing lower by 1.51% and Hang Seng dipping by 1.48%. The USDJPY last night continued all the way to a new 2-weeks low at 96.87 and then made technical retracement back to 97.33 as
oscillators went into oversold zones.
Concerning losing currencies, the Aussie against the greenback dropped below support at 0.8932 and is moving towards 3-year low at 0.8846. The Australian dollar is under selling pressure due to investor’s risk- off as well as on dovish comment by RBA Governor, Glenn Stevens the previous week, in addition the S&P/ASX 200 declined by 1.05% earlier today. The sterling drew resistance at line at 1.5549 and then plummeted to 1.5505 versus the US dollar, as the USA, UK and France are finalizing plans for military operations against Syria. It is likely that we would see further selling pressure on these currency pairs because comments by UK Prime Minister David Cameron and US Secretary of State, John Kerry, indicating that are convinced of the use of chemical gas by Syrian government.
Lastly, the Euro against the US dollar remains in 1.3408/1.3328 sideways zone, losing slightly in immediate trading due to weaker than expected German Consumer Climate. On the data front, M3 Money Supply for EZ would be released and then investors will focus on BOE Governor Speech and US Pending Home Sales.
