Over the last 24 hours the outlook for risk has been mixed. The EUR has rebounded off daily cloud support against USD, GBP and SEK. The S&P500 daily cloud has also yet to be breached despite a trendline giving way yesterday. However, important support has given way in some markets most notably a two year trendline in nickel, but also significant trend following systems in cable and USD/CAD. On balance the signs imply that Risk is likely to remain under pressure in the near-term.
BARCLAYS CAPITAL
Foreign Exchange Research