 Sterling suffered a lot of volatility today. It surged on stronger than expected consumer inflation data, but then reversed on news that UK Prime Minister Theresa May's rejection of EU's Irish border proposal. The Pound sort of stabilized then as markets await what May is going to say exactly in the EU summit in Salzburg. For now, Sterling is the second weakest one for today, following Swiss Franc. On the other hand, Australian Dollar is the strongest one as risk markets have already left escalation in US-China trade war behind. Recent strength is global treasury yield is worth a note. US 10 year yield broke 3% handle this week and is so far staying firm. German 10 year yield trades slightly lower at 0.48 but it's on track to take on 0.5 key resistance zone. This is seen as a major factor in driving down the Japanese Yen and, to a lesser extent the Swiss Franc. Meanwhile, 10 year Japan JGB yield has another strong rally today after BoJ rate announcement. It closed up 0.058 at 0.122, hitting the highest level since January 2016. This could be the factor that gives the Swiss Franc extra pressure. Major European indices are generally higher today. At the time of writing, FTSE is up 0.17%, DAX up 0.14% and CAC up 0.21%. Earlier in Asia, Nikkei closed up 1.08%, Hong Kong HSI gained 1.19% and Singapore Strait Times rose 1.19%. China SSE rose 1.14% to 2730.85, taken 2700 handle out firmly. There was no impact on sentiments after this week's escalation in US-China trade war. SSE is now suddenly looking back at 2800 resistance zone again. |
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