Investors Abandon Risky Assets and Seek Shelter in Havens

Risk-off Prevails on Tightening Expectations, but also on Growth Concerns

The US dollar traded mixed against the other major currencies on Monday and during the Asian session Tuesday. It gained versus AUD, CAD, and NZD, in that order, while it underperformed versus EUR, GBP, and JPY. The greenback was found nearly unchanged against CHF.

S&P 500 — Technical Outlook

The S&P 500 kept sliding yesterday, with the cash index hitting support at 3965 overnight. Overall, the index remains well below the downside resistance line drawn from the high of March 29th, with yesterday’s fall confirming a forthcoming lower low after overcoming the 4065 zone, marked by the low of May 2nd. In our view, this keeps the short-term outlook negative.

EUR/USD — Technical Outlook

EUR/USD edged up yesterday, after hitting support at 1.0490. Since April 27th, most of the price action has been contained within a sideways range between that barrier and the 1.0595 resistance. However, in the bigger picture, EUR/USD remains below a tentative downside resistance line taken from the high of March 31st. Thus, even if the rebound continues above the upper end of the short-term range, we still see chances for the bears to recharge below that line.

As for the Rest of Today’s Events

The only other release worth mentioning is the weekly API report on crude oil inventories, but as it is always the case, there is no forecast available.

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JFD is a leading Group of Companies offering financial and investment services and activities.