3 words for today! Crazy Cyprus Carnage! Gold up, Bonds Up, USD up and Dow Jones up!! I don't think this has ever been seen before! Various rumours about resignations, deposit chit chat and ECB rhetoric dogged the market today, an early morning sell off found a bid tone as America woke up but as the afternoon unfolded, stocks went red and the Euro got a hammering. EUR/USD breached the 200 Day Moving Average but rallied late on the No vote to close above the level and just under the 1.29 handle! We saw the S&P 500 sell off to 1538 but found a bid at the same time as the Euro to close at 1548 and of course Wall street had to go green just before the closing bell! A mad day by all accounts with some volatile price action which we will undoubtedly see for the rest of the week until we have a conclusion to this deposit tax.The EUR/GBP had a similar tone as it broke through the 55-day moving average at 0.8517 and then rebounded to 0.8537. The short-term breakouts leave a mixed technical picture with the verdict likely in the day ahead.
As worries mounted about Cyprus the market bought yen, knocking USD/JPY below bids at 95.00 and down to 94.72 before it rebounded to 95.07.
It was a volatile day full of major headline pitfalls but overall moves were relatively small as the market comes to terms with Cyprus’ tiny size of 0.2% of total Eurozone GDP.
Enjoy your evening, Get some sleep, might be useful for the rest of the week
Lowkey
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