FXstreet.com (Buenos Aires) - Risk aversion was the overall winner Monday. Despite The Bank of America print much bigger-than-expected first quarter profit of $4.2 billion, CEO's warnings about deteriorating credit quality, triggered the biggest decline in two months in Wall Street. Stocks tumbled on worries about financial sector earnings, losing 3.6% today. Oil, also tumbled 9% and close below the $ 46.00 a barrel, on stronger dollar, weak demand and rising supply.
Euro reached a four-week low against dollar at 1.2888 and remains just above the 1.2900 level. With this fall, Euro reversed all gains accomplished since last FED's decision in March of applying quantitative easing, and remains on negative territory for 3rd week in a row. Technically oversold, upside corrections should hold under the 1.3000 level to keep bearish trend valid. Gbp also fell to a three-week low, dragged down by market sentiment, and ahead of this week budget report.
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