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Brussels Attack Overshadow Forex Markets

Brussels Attack

The Brussels attack tragic events cast a dark shadow over the forex market, with equities turning lower and impacting forex to a modest degree.

The JPY bought up across the board, with the USD rate knocked back from 112.00+ levels down to 111.35-40 or so, but a steady grind higher seen since. The commodity currencies were also hit, but after AUD/USD took out the Monday lows, a resilient push higher resulted in a move through the .7625 highs. NZD/USD moved higher in lock stop, to keep the cross rate stable. USD/CAD snapped up to 1.3135-40 but was back under 1.3050 later in the day after the Brussels attack.

However, the big mover on the day was GBP – again – with Cable slammed hard from pre-1.4400 levels, and losses gathering momentum through 1.4300 before initial support at 1.4250 held. NY then hammered the pair through these levels, tripping stops through 1.4230-20, later taking out 1.4200 but the move was limited to 1.4188/90. EUR/GBP tested higher also, but last week’s .7911 peak held firm throughout.

Further weakness ahead for GBP, but some heavy losses were suffered here, and some recovery looks to be in play ahead of the London close. UK inflation was softer than expected, but GBP was already on the way down, but the better than forecast IFO survey in Germany had little impact either way. [Brussels attack]


Rev Francis Waive

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