 New Zealand Dollar is the strongest one in the currency markets today, as boosted by fastest GDP growth in two years. Otherwise, the markets are rather mixed. Australian and Canadian Dollar turned softer and are trading as the weakest ones together with Swiss Franc. Yen regains some growths, followed by Euro. Dollar and Sterling are mixed. For the week commodity currencies remains the strongest but it's now led by Kiwi. Yen remains the weakest, followed by Swiss Franc and then Dollar. Asian stocks are mixed at the time up writing. Nikkei is up 0.37%, Singapore Strait Times up 0.09%. But Hong Kong HSI is down -0.02% and China SSE is down -0.12%. They're digesting this week's strong rebound. Overnight, DOW closed up 0.61% at 26405.76, It's now reasonably close to record high at 26616.71 and could challenge it any time. S&P 500 rose 0.13% to 2907.95 but NASDAQ dropped -0.08% to 7950.04. Treasury yield staged another day of strong rally. 30 year yield closed up 0.042 at 3.237. 10 year yield closed up 0.035 at 3.083, now also close to 3.115 key resistance. 5-year yield rose 0.024 to 2.960, breaking 2.941 resistance. We'd like to repeat that larger strength in yield at the long end should be welcomed by Fed policy makers. Technically, Yen crosses showed clear loss of near term upside momentum. WE could seen USD/JPY, EUR/JPY and GBP/JPY dip back to 111.65, 130.09 and 146.24 minor support levels today. EUR/USD still struggled to break through 1.1733 resistance. GBP/USD and USD/CHF showed loss of momentum too. The condition is set for Dollar to rebound too, it's just a matter of time. |
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