European stocks were down once again yesterday; the Euro STOXX 50 index has fallen in seven of the past nine sessions and is not far off flat for the year. The Nikkei has also sold off for the seventh consecutive session. It seems that for most of the year to date, investors have been able to hang on to the perception that the US economy is gaining traction and the eurozone credit crisis, if not past its worse, had at least moved back from peering over the cliff edge. This is not totally unfamiliar territory for markets, given we've seen several periods since 2009 during which markets have priced in a sustained recovery, with reality then choosing to bite. For FX, it's the traditional safe-havens that are taking the strain, the yen having unwound around one third of the recent depreciation and the Swiss franc battling with the ceiling imposed by the SNB.
Also in today's Daily Forex Brief:
- SNB vs. the markets
- Turbulent times down under
- Spain's struggle