EUR/USD Drops Amid Paris Shootings

Despite a quiet day, stock markets managed to edge higher yesterday, however sentiment is fragile ahead of the Presidential elections this Sunday in France, and a shooting having taken place in Paris which ISIS claimed responsibility for, adding further uncertainty.

Major events of the day: Eurozone PMIs will be released in European session today while UK retail sales will be featured. Canada will release CPI. US will release PMIs and existing home sales.

The USD was mixed with AUD outperforming and JPY the worst performer. BoJ Governor Kuroda’s comment that a strong Yen would delay achieving the Bank’s 2% inflation target saw JPY weaken. USD/JPY hovers in in the 109.20 area this morning, maintaining most of yesterday’s gains. Oil and gold were little changed.

EUR/USD bounced slightly yesterday as markets have priced in a slightly lower risk of a Le-Pen win, however later EUR/USD crashed on news of a Paris shooting in Champs-Elysees shopping boulevard, resulting in death of one police and injuries of two others.

Sterling trading was mostly driven by global moves and technical considerations yesterday. EUR/GBP was supported by the overall euro rebound. EUR/GBP temporary moved to the 0.84 area, but the gains were reversed as the euro returned intraday gains later in the session. The UK retail sales data might bring some animus for sterling trading today.

Disclosure: None.

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