Sterling opens the weak broadly lower and stays soft after EU chief Brexit negotiator Michel Barnier said he "strongly opposed" to UK's impractical plan. The Pound has been sensitive to any Brexit headlines and will continue to be so. New Zealand Dollar is the second weakest one. But Canadian Dollar is not too far away after trade talk with the US failed. Yen is trading as the strongest one on risk aversion. Economic data released in Asia Pacific were generally not too supportive. Euro and Australian Dollar are generally higher, next to Yen, and these two are paring last week's steep losses. In other markets, Nikkei closed down -0.69% at 22707.38. It's now getting farther away from 23050 key near term resistance. China Shanghai SSE is down -0.38% at the time of writing. Hong Kong HSI is down -0.83% and Singapore Strait Times is down -0.37%. 10 year JGB yield is rising for another day, up 0.011 to 0.12%. This is another Yen supportive factor too. WTI crude oil breached 70 to 70.5 last week but it's now back at 69.65. Gold is hovering around 1200 as consolidation continues. Technically, one development to note is EUR/GBP's rebound after drawing support from channel support. With 0.8992 minor resistance breached, the cross is possibly heading back to 0.9097 resistance And with the near term rising channel supported, outlook stays bullish for further rally. USD/CAD will be facing near term channel resistance at 1.3098 soon. Decisive break there will suggests that recent correction from 1.3385 has completed and could pave the way to retest this high. |
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