Feb. 4 (Bloomberg) — The euro tumbled to an almost one- year low against the yen and the least versus the dollar since May on concern some European nations’ will be unable to reduce surging budget deficits.

 

The forex.com/category/yen/”title=”yen” >Yen soared as concerns over Spain’s credit rating and a rise in U.S. initial jobless claims sparked broad based risk aversion. The yen has regained its top status as a funding currency which has made risks trends more prevalent in determining price action.

 

Remain Short AUD/USD

Feb 04

I remain short AUD/USD since yesterday with a profit target at 85 and I expect more Australian dollar weakness going forward as risk-aversion takes over the market sentiment. This week, the Reserve Bank of Australia left its benchmark interest rate unchanged. The market had been pricing a rate hike and the RBA announcement caught many carry traders by surprise. As a result, many currency traders have been selling short AUD/USD since the rate announcement. While AUD/USD long positions are 1.7% stronger since last week, short positions are 34.3% stronger since last week, according to the FXCM SSI, which measures the positioning of thousands of retail traders. Good luck

 

Feb. 4 (Bloomberg)– The euro tumbled to an almost one-year low against the yen and the least versus the dollar since May on concern some European nations’ will be unable to reduce surging budget deficits.