 Dollar strengthens broadly today, in particular against commodity currencies, as global ex-US markets are back in risk averse mode. Trade tensions and emerging market problems are staying as the two main themes that weigh on investors' sentiments. The greenback is followed by Yen and Sterling as the next strongest. Nonetheless, the Pound showed little reaction despite BoE Carney's indication that he could stay longer to help Brexit transition. On the other hand, New Zealand Dollar is trading as the weakest one, followed by Canadian Dollar. NAFTA, or US-Canada trade negotiation will restart this week but there is little hope of any progress. In other markets, European stocks are trading generally lower at the time of writing. CAC leads the way down by -1.61%, DAX down -1.36% and FTSE down -0.72%. Earlier today, Asian markets strengthened towards the end of the session as led by China. The Chinese SSE rose 1.1% to close at 2750.58. Hong Kong HSI rose 0.94% and Singapore Strait Times rose 0.10%. Nikkei closed much earlier and didn't catch the ride, closed down -0.05%. Gold dips to as low as 1191.35 as consolidation from 1214.30 extends. Technically, USD/CAD's strong rise and break of 1.3173 resistance indicates that corrective fall from 1.3385 has already completed at 1.2886 already. More importantly, it reaffirms that medium term rise from 2017 low at 1.2061 is still on course for another high above 1.3385. Now, focus will be on 1.1529 in support in EUR/USD and 0.9775 in resistance in USD/CHF to confirm underlying Dollar strength. |
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