 Risk aversion is the general theme in European and Asian markets today while US futures point to lower open. But that's not quite reflected in the currency markets. New Zealand Dollar is trading as the strongest one so far. Canadian Dollar also recovered some ground as markets await BoC rate decision. The central bank will most likely stand pat today and save the anticipated H2 rate hike for October. US-Canada trade talk will also restart but expectation is rather low. Dollar follows as the third strongest one. Sterling is so far the worst performing one as this week's selloff, on Brexit, extends. Stronger than expected PMI services couldn't save the pound. Yen and Swiss Franc follow as the next weakest despite risk aversion. Easing worries over Italy is seen by us as a major factor. Italian 10 year bond yield drops sharply by -0.1351 so far today 2.896. Also, German 10 year bund yield is up 0.009 to 0.368. Now, spread at 300 is rather far away again. And recovery in German yield helps support Euro against Yen and the Franc. In the stock markets, at the time of writing, FTSE is down -0.37%, DAX down -0.68% and CAC down -0.98%. Earlier today, Hong Kong HSI closed down -2.61%, China Shanghai SSE down -1.68%, Nikkei down -0.51% while Singapore Strait Times fell -1.69%. WTI crude oil once again failed to stay above 70 handle and is now back below 69. Gold is now defending 1190 as near term consolidation extends. | 
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