 Yen opened the week mildly higher as Asian markets are generally soft on risk aversion, after Trump warned of tariffs on additional USD 267B in Chinese imports on Friday. However, Nikkei is rather immured from trade threats for today, despite Japan being named the next target. But after all, with the exception of selloff in New Zealand Dollar, the forex markets are generally in range. The fact that Australian Dollar follows Yen as the second strongest says it all. Traders are waiting for the markets to come back to life in European session, when some important UK data are scheduled to release. At the time of writing, Nikkei is trading up 0.13% and is set to end the day with slight gain. On the other hand, China Shanghai SSE is down -0.73%, Hong Kong HSI is down -1.09% and Singapore Strait Times is down -0.58%. In particular, SSE, now at 2683, is very close to August low at 2683 and key support level at 2638 (2016 low). Break of these levels will certainly spill over to other Asian markets. Gold is trading at 1193 as recent consolidation extends. But 1182.90 near term support neve is safe and more upside is still expected through 1214.30 at a later stage. Technically, EUR/USD will is facing 1.1529 near term support again. Break there will indicate completion of recent rebound from 1.1300 and deeper decline would be seen back to retest this low. However, how the forex markets would reaction elsewhere is uncertain. EUR/USD's fall could be triggered by another selloff in EUR/GBP, which is reversing recent rally. Or, it could be triggered by selloff in EUR/CHF which is extending the decline from 1.2004 and took our 1.1200 already. Meanwhile, GBP/USD and GBP/JPY are staying in tight range last week. Today's UK data may finally prompt a breakout. |
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