 The forex markets are rather quiet today with major pairs and crosses bounded in Friday's range. It's back to business as usual for a Monday, without any surprise. For now, Swiss Franc is trading as the strongest, followed by Dollar. New Zealand Dollar, Euro and Australian Dollar are the weakest ones but the picture will more likely change than not as the day goes. In other markets, Nikkei closed down -71.38 pts or -0.32% at 22199.00. But other major Asian indices are in black, with HK HSI up 1.01%, China Shanghai SSE up 0.45% and Singapore Strait Times up 0.08%. Gold is back above 1180 but struggles to extend gain. The meeting between low level US and China officials on trade this week is something that might catch attention. But just like many other market participants, we have very low expectations on it. There are speculations that the talks could set the stage for a summit between US president Donald Trump and Chinese President Xi Jinping in November. But it's too early to tell, in particular due to the erratic nature of Trump. German-Italian yields spread is another development to watch. Currently at 3.114, Italian 10 year yield is now significantly higher than July's close at 2.734. German 10 year bund yield, on the other hand, is now at 0.305, comparing to July's close at 0.446. Greece's marathon bailout program completes today, marking the end of the Eurozone debt crisis. But there are talks of crisis revival, starting from Italy. Worries could deeper should German-Italian spread jumps above 300 again, which it did earlier this year. |
No comments:
Post a Comment