On the foreign exchange market, risk aversion made itself felt through a general strengthening of the greenback against its main competitors, especially against the euro, which fell all week against the dollar.
From 1.0850 we fell to 1.0650 and only in the evening of Friday did we witness a recovery towards 1.0700. But tension remains high and until the vote has been held in France, it will be very difficult to see a recovery of the single currency.
Therefore, the strategy, unless there is news that this scenario changes, is and remains to sell on any correction in the euro.
But the same argument seems to apply, even if with less intensity, to the other currencies, Gbp, Aud, Nzd, while the dollar remains in full strength but also the Swiss franc which, it should be remembered, has gained almost 400 pips less than three weeks, from 0.9928 to 0.9525 on the Eur/Chf exchange rate with theSnb who seems helpless. Usd/Jpy stable in the 157.00 158.00 area with fears for the possible presence of the Boj, which at 158.00 seems to have placed sell orders, given the trend of the price action last Friday.
Edited by edited by Saverio BerlinzaniSenior Analyst at ActivTrades
