 Yen and Dollar are trading as the weakest ones in Asian session as risk aversion receded. In particular, Nikkei rebounds over 1% as concerns eased about last week's typhoon and earthquake. Canadian Dollar is the strongest one at the time of writing, followed by Australian Dollar and Sterling. But for the week so far, Sterling is the star performer on Brexit deal optimism, followed by Euro. Swiss Franc, on the other hand, is the weakest one, followed by Yen. The Pound will look into today's job data for more inspirations. Overnight, US indices ended mixed with DOW down -0.23%. But S&P 500 and NASDAQ gained 0.19% and 0.27% respectively. There was little reaction to Republican's tax cut 2.0, as it's mainly seen as a political move without substance. Treasury yield also ended mixed, with five year yield up 0.005, 10-year yield down -0.005 and 30-year yield down -0.015. In Asian, Nikkei is trading up 1.12%, Hong Kong HSI down -0.31%, Singapore Strait Times down -0.27%. China Shanghai SSE is up 0.10% but remains in proximity to key support level at 2638.3. Strength of rebound from this key support continues to get weaker and weaker. Technically, EUR/USD defended 1.1529 again yesterday and the rebound from 1.1300 is still in favor to extend higher. But even if 1.1733 near term resistance could be breached, we'd continue to expect strong resistance from 1.1779 medium term fibonacci level to limit upside. USD/CHF and EUR/CHF are yet to break 0.9766 and 1.1319 to confirm near term reversal. These two levels will continue to be watched. GBP/USD breached 1.3042 yesterday, which suggests near term rise resumption. Strong UK job data today could help push GBP/USD towards 1.3165 near term projection levels. |
No comments:
Post a Comment