The German DAX40 is again testing the support at 13,000 as the bounce on Friday and Monday proved unsustainable. The FTSE100, meanwhile, is back near the 7000 level, also returning to significant technical and psychological support. The US index futures also showed a loss of recovery momentum on Thursday.
At the same time, the currency market is showing a pull into defensive instruments. USDJPY pulled back to 135.35 after touching 136.70 earlier in the week. That said, the dollar is doing better than most developed country competitors today.
The euro is trading below $1.05 again after a failed attempt to bounce above $1.06 during Wednesday’s trading. Once again, the bears took the upper hand on EURUSD’s approach to the 50-day moving average.
