On Monday, global markets had shifted to an outright risk-off mode. This weighed on the EUR/USD cross rate, too. Even so, the damage for the euro was contained and the broader technical picture was left intact.
Intraday, EUR/USD had dropped from the 1.31+ area to 1.3075 after the publication of disappointing GDP data in China. Sentiment on risk stayed fragile in Europe. Equities, and even more commodities, were aggressively sold. A selloff in commodities often goes in lockstep with USD buying. This was also the case yesterday morning. However, given the sharp decline in the likes of gold, the losses of EUR/USD were contained. During the morning session, there were rumours that Greece could have difficulties to repay a T-bill. This uncertainty put additional pressure on the euro. EUR/USD dropped to the 1.3055 area. Even so, the downside was still rather well protected.
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