In the second day of the week the market participations redirected to safer assets, after the U.S. consumer confidence marked significant drop putting shadow upon the global recovery.
Consumer confidence in June fell from revised 62.7 to 52.9, which was far from the expectations for 62.5.
The slumping sentiment added to fears of a potential liquidity shortfall of more than 100 billion euros in the financial system as European banks repay 442 billion euros emergency loans on Thursday.
After these reports the major indexes on Wall Street sunk with more than 2.5% each putting the higher-yielding assets under strong pressure.
The euro fell to $1.2151 against the dollar, while versus the yen it dropped to ¥107.32.
The British pound fell against the dollar to $1.5012, while against the yen it moved back to ¥132.83.
Against the Swiss franc, the dollar dropped to 1.0801, while the euro has reached a new record low at 1.3166.
TECHNICAL OVERVIEW
EUR/USD
The short term picture is neutral as the euro consolidated around 1.2300 levels. So far the rise is limited by the resistance at 1.2470 and if broken successfully next targets will be the resistances at 1.2670 and 1.3080. On the downside, support is seen at 1.2240 followed by 1.2160 and 1.2000.
EUR/USD (chart, table)
USD/JPY
The short term picture is negative as the pair broke below the 89.90 level. So far the upward movement is limited by the resistance at 91.00, and if broken successfully next targets will be the resistances at 92.30 and 92.80. On the downside, below 89.20, support is seen at 88.05 and 87.30.
