EURUSD Moves Up 400 Pips In Just A Few Hours And Then Fell 200 Pips

Is EURO the new safe haven? China is making the stock markets around the world nervous. Stocks are plunging and investors are taking heavy losses. EURUSD moved up 400 pips in just a few hours when the market opened on Monday.

Following calls for parity against the dollar just a few months ago, the single currency is now one of the few assets in the world rallying.

Global stocks had their worst week of the year last week and the only assets to perform well were the traditional “flight to safety” assets, such as the Swiss franc, U.S. Treasurys and gold.

EURUSD started off on Monday around 1.13500. Then when the New York Market opened it just shot up 200 pips in less than an hour. It rose and reached 1.17133. At this level it found resistance then it fell around 200 pips. So you can see how much wobbly the markets are with the China situation. The same is happening to the stocks. Dow Jones first fell in the morning. Then it recovered a large part of the loss.

As long as the situation in China does not clear, we should expect the markets to be wobbly and volatile. The USD bulls jumped back in to the bids in the Asian session, pushing EUR/USD lower on the 1.15 handle, after the greenback was hammered to seven month lows versus the euro on Monday after markets went wild following China ‘s stocks turmoil which sparked risk-aversion across the board.