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30 Sep 2013
Risk aversion on Italy, US gvrt shutdown
FXstreet.com (Barcelona) - Market's sentiment along interbank trading hours turned sour, following news that the Italian government is in the brink of collapse, while at the same time, U.S. Republican-run House voted to delay Obama care law, leading to the prospects of a US government first shutdown in 17 years.
According to Kit Juckes, Head of Currency Strategy at Societe Generale: "Apprehension is probably the word", noting that since "the US is still heading towards shutdown and the Italian government is heading for a confidence vote that probably precedes elections, farce reigns and risk aversion rises."
At the retail platforms, the EUR/USD is quoted at 1.3493 at the open from a close at 1.3520 on Friday. The Yen is the currency enjoying the most bids on risk aversion flows, with EUR/JPY suffering the most, down over 100 pips from 132.73 to 131.79. On thr USD/JPY domain, the exchange rate trades at 97.70 from 98.20 on Friday.
According to Kit Juckes, Head of Currency Strategy at Societe Generale: "Apprehension is probably the word", noting that since "the US is still heading towards shutdown and the Italian government is heading for a confidence vote that probably precedes elections, farce reigns and risk aversion rises."
At the retail platforms, the EUR/USD is quoted at 1.3493 at the open from a close at 1.3520 on Friday. The Yen is the currency enjoying the most bids on risk aversion flows, with EUR/JPY suffering the most, down over 100 pips from 132.73 to 131.79. On thr USD/JPY domain, the exchange rate trades at 97.70 from 98.20 on Friday.