By ForexMansion.com
Asian stock markets fell today for the first time in three sessions after fatal radiation levels were detected outside Japan’s nuclear plant, preventing workers from cooling the damaged nuclear reactors. A possible nuclear disaster spread fears among the market participants who lost their appetite for risk.
Risky events from around the globe continue to mount this week as well, where the intensified military conflict in Libya, continued tensions in the Middle East, the European sovereign debt crisis and the fight against inflation also weigh on investors’ sentiment.
Traders will be caution and waiting for more signs before taking a decision about their investments. As a result, markets were mixed today. Risk aversion brought gains to the dollar today against majors, as the outlook for growth continues positive after Friday’s upside revision to growth and ahead of the Income Report today.
The euro is moving in a tight range with an upside bias against the dollar since the economy lacks fundamentals for today. The EU leaders failed on Friday to offer any concrete decisions, Portugal may be forced to accept financial aid, while the rising inflation in the region may determine the central bank to consider raising rates.
As uncertainties mounts, market participants are reluctant to seek higher yielding assets favoring the safe heaven dollar, which rose against the yen as well, especially as markets await a report from the US today showing consumer spending may have increased by 0.5% in February, and pending home sale may covered from contraction and remained flat in February after 2.8% drop.
The Libyan turmoil and the mounting tensions in the Middle East are keeping oil prices around the $105 per barrel, with a downside bias on some victories obtained by the rebels, which may accelerate the resolution of the crisis in Libya. Gold fell today towards $1415.00 per ounce today, on signs the US economy is improving.
