 Canadian Dollar remains firms today as Canada-US trade negotiation restarted. Initial signs are positive but more work is needed to be done, swiftly. Australian and New Zealand Dollar follow as Asians stocks strengthen mildly. Yen is trading as the weakest one on risk appetite, followed by Sterling as there is no progress on Brexit talks. For the weak, Canadian Dollar is the strongest one, followed by Swiss Franc. Dollar is in red across the board, followed by Yen. In other markets, Nikkei is up 0.68% at 22968.18 at the time of writing, still off key resistance at 23050.39. Hong Kong HSI is up 0.14% and Singapore Strait Times is up 0.17%. China Shanghai SSE continues to lag behind other Asian indices and is down -0.35%. The development suggests that the US is softening its stance on trade with key allies. But it's not even time for a talk with China yet. Overnight, DOW closed up 0.06%. S&P 500 and NASDAQ were up 0.03% and 0.15% respectively. Gold lost some momentum after hitting 1214 and has turned into consolidation, back pressing 1200. Technically, the first thing to note is the lost of momentum in stocks. Despite making new record highs, both S&P 500 and NASDAQ were bounded in tight range overnight. Both have also closed down yesterday's open. Similarly, DAX and CAC also reversed gains yesterday despite trade optimism, with DAX down -0.09% and CAC 0.11%. Nikkei is feeling some strong resistance ahead of 23050 resistance. Hence, barring any drastic news, we'd probably see risk appetite eases a bit. Secondly, Sterling and Aussie are both rather weak indeed even though the headlines are on Dollar and Yen. As risk appetite recedes, there's a chance for Dollar and Yen to have a mild come back. And in that case, GBP/USD, AUD/USD, GBP/JPY and AUD/JPY could face some pressure. |
No comments:
Post a Comment