Tuesday, 24 April 2012

Daily Forex Brief London: Tuesday 24th April 2012


Yesterday proved to be a fairly tumultuous day in markets, in stocks especially. For Europe, it was a combination of the economic and political that conspired to put pressure on investor sentiment. Events in both France (a likely change in president) and the Netherlands (a backlash against austerity) impacted sentiment, as did the softer PMI data for both France and Germany. For now, it appears that the factors that were supportive for most of Q1 (ECB 3Y money, Greece inching back from the brink and better US data) are waning, but suitable replacements have yet to be found. For FX, this is seeing a stronger return to 'risk-off' moves into month-end, so the dollar is firmer against most (the yen excepted) and the Aussie is suffering the most, helped by softer inflation data overnight.

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