While there was only little movement in the finical markets yesterday, the market reacted strongly to multiple explosions in Brussels today. The euro slid below 1.12 on heightened geopolitical risks. As history has shown that such reactions tend to be short-lived, we may see a pullback towards 1.1250.
The British Pound fell sharply towards its next support at 1.4250 on speculation the Brussels terror attacks will boost the motivation of voters in favor of leaving the European Union. We currently see a lower support at 1.4220.
Our thoughts are with the victims of the attacks and their families.