Risk sentiment on the rocks ahead of European trading ...Middle East

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The overall chart still shows that this has been a rough week for US stocks in general. The S&P 500 is still down roughly 3% this week despite yesterday's bounce with the Nasdaq also in a similar spot.

In FX, USD/JPY is back down slightly from 148.00 earlier to 147.85 currently. The dollar is steadier elsewhere but remains mixed overall on the week. EUR/USD is keeping closer to 1.0900 still while GBP/USD continues to nudge higher towards 1.3000.

All in all, the bounce in risk yesterday is not really hinting at a turnaround in sentiment just yet. The market mood remains very fragile and the charts are also suggesting that there is scope for more downside pressure in the short-term.

This article was written by Justin Low at www.forexlive.com.

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