Today, stocks took a pounding for most of the day. Risk aversion is back to the markets in a major way. There’s all kinds of bad news about the performance of – or lack thereof – financial firms. We also have to remember that there were those job numbers at the end of last week. The Markets seemed to shrug that off at the time. I guess this is as good a time as any for a late reaction.
There’s also some fear out there regarding the US Government’s actions. The Treasury secretary and his cronies seem to be more than willing to displace high ranking employees at the companies that they have provided assistance to. I am not too sure everyone is comfrotable with that.
In the forex markets, the reaction today was evident. The Dollar and Yen gained, the others lost. Still, if you look at the EURUSD chart below, you can see that resistance at around 1.3320, a Fibonacci level, held. The Euro seems to be rebounding in the Asian Session this morning (evening, Eastern Time), but I wouldn’t put much stock in it. There are a bunch of economic news items for tomorrow, including the Eurozone’s domestic product, and the Australian RBA will be making a rates announcement tomorrow.
Best to wait and see…