EUR/USD, GBP/USD and USD/JPY in retreat as risk appetite falters
Pre-ECB nerves have hit risk assets across the board, leading to losses for EUR/USD, GBP/USD and USD/JPY.
EUR/USD drops back from $1.19
EUR/USD has firmly rolled over, retreating from $1.19.
This second failure to push on above $1.19 looks to have handed the initiative to the sellers, who will be looking for a resumption of the downward move towards $1.17. As yet the bulls do not appear to have the strength to halt further declines, but a recovery above $1.185 might stem further losses.
GBP/USD declines further
The pound is in retreat as well with GBP/USD, after it fell back from the highs for the month.
A bounce yesterday is being unwound, which puts the pair back on course to $1.36. Tuesday’s break of trendline support was the key development that has handed the initiative back to the sellers.
USD/JPY falters after recent gains
Hopes of more upside with USD/JPY have been capped for now with the move above ¥110.35 that was then knocked back yesterday.
The dollar has fallen back since then, although it remains in the upward channel of the past month, which may yet result in another move higher.
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