FXstret.com (Barcelona) - Risk aversion has returned to the markets and Wall Street ha opened the session with substantial declines as investors retreated amid concerns about structural debt woes arisen by Dubai World's debt problems. Dollar and Yen have appreciated.
Dow Jones Industrials Index drops 1.80%, while the S&P Index and Nasdaq Index drop both by 2.10% in the first hour of trading.
Investors are pulling their cash off risky assets and flocking to safe havens such as Dollar and treasuries, as concerns about global economy after Dubai World, the country's largest corporation asked creditors for a six-month delay on debt payments.
Dollar and Yen favoured on risk aversion
EUR/USD decline from 1.5145 15-month high reached on Monday extended on Asian session to 1.4825, and the Euro has remained moving in a range from 1.4880 t0 1.4925/30 ever since.
GBP/USD decline from Thursday's high at 1.6725 extended on Asian session to a fresh 3-week low at 1.6270, and the pair's recovery attempt has stalled in a range from 1.6370 to 1.6440.
USD/JPY has extended its decline from week high at 89.20 to a fresh 15 year low at 84.80, and the pair has picked up during Asian and European session, reaching 87.00 resistance, which is being tested at the moment of writing.