 Dollar and Yen are back under selling pressure today. In particular, USD/CHF and GBP/JPY take the lead in resuming recent moves. GBP/USD is following closely with eye on 1.3142 minor resistance. Both currencies received no special lift from news that Trump is going to impose new tariffs on China. Trump tweeted that "tariffs have put the U.S. in a very strong bargaining position". But there was no hint on when the tariffs will be formally announced. Traders could turn a bit cautious and won't commit until it's formalized. Secondly, the rumored 10% tariffs are much lower than the original figure of 25%. And the impact would possibly be a notch down. In other markets, global equities are generally down but losses are so far limited too. At the time of writing, FTSE is down -0.22%, DAX id won -0.46%, CAC is down -0.16%. Earlier today, Hong Kong HSI closed down -1.3% and Singapore Strait Times lost -0.63%. Nikkei was on holiday. China's Shanghai SSE dropped -1.11% to 2651.79, lowest in nearly four years. Key support level at 2638.30 looks more vulnerable than ever. However, it's unsure whether downside momentum will pick up again when this key support is broken. Gold continues to gyrate in tight range below 1200. Technically, focus is first on 1.3142 temporary in GBP/USD. Then 1.1733 in EUR/USD and 131.10 in EUR/JPY will be watched to see in Euro can catch up with Swiss Franc and Sterling. Or, EUR/GBP will break 0.8875 temporary low and leave the Euro behind. |
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