Cold War 2.0 boosts safe haven assets, EUR sent lower as Draghi talks about stimulus US markets closed in negative territory as pressure ahead of further earnings continues; S&P 500 dropped to a two-month low on Friday. Asian markets also fell but mostly due to tensions over Ukraine. A lot of market shaker events occurred over the weekend, with the escalation of tensions in Ukraine boosting safe haven assets. The Swissie gained strength against its major peers while Gold spiked by 8$ at the opening to stabilize above a resistance zone by 1327.0$/ounce. Despite the current outlook, EUR/CHF remained rather resilient, this must be due to Swiss National Bank’s Jordan comment: “We will enforce the minimum exchange rate, this is very, very important”. The second major macro event adding volatility to the market was Mario Draghi’s clear easing signal to the market: “a further strengthening of the exchange rate would require further stimulus”. As a result, EUR/USD opened with a bearish gap and heads back to 1.38, with further continuation during the week not to be excluded. Good day,
Posted on: Mon, 14 Apr 2014 08:33:24 +0000