FXstreet.com (Barcelona) - Risk appetite has vanished at 9:00 GMT with the rather negative start of European Stock markets, which has produced an aggressive sell off for European currencies against the Dollar, and Yen, Eurozone Industrial production, at record low did not help to cheer up investors.
The GBP/USD has been the most affected currency on European morning trade shift, The Cable has dropped about 300 pips, breaking through 1.4200 reaching intra-week low at 1.4135, at the moment is trying to pick up towards 1.4200, but, according to the Ace Trader Technical Team the odds for levels above 1.4225 are low: As cable has recovered after intra-day selloff to 1.4138, suggesting minor consolidation abv there is in store ahead of U.S. opening, however, upside wud be ltd to 1.4225 n renewed selling shud emerge around 1.4250/60.
EUR/USD has gone though a similar session although losses are linited to about 160 pips, the Euro went to the current week's low at 1.2796 and, at the moment, is trying to recover from 1.2810. EUR/JPY dropped 150 pips reaching week-low at 115.17. The USD/JPY has barely moved from levels above 89.80.
In U.S, Retail Sales are expected to continue declining, although at a somewhat slower path than in December, while Jobless Claims could show another rather disgusting surprise, negative data could increase risk aversion