 Canadian Dollar remains firm on the USMCA trade deal but it's waiting for fresh stimulus to extend rally against Dollar and Yen. Australian Dollar is also steady after RBA stands pat and published a neutral statement as widely expected. Meanwhile, Euro is suffering some fresh selling on persistent worries over Italy, which is heading for a budget clash with EU for sure. Sterling also turned mixed after another Brexit rumor faded without follow up news. Overnight, DOW closed up 0.73% at 26551.21 after the USMCA news. But that came after hitting as high as 26737.98 and paring much gain. Similarly, S&P 500 hit as high as 2937.06 but ended up only 0.36% at 2924.59. Nasdaq closed down -09.11% at 8037.30. Treasury yield actually showed a bit more strength as 10 year yield rose 0.024 to 3.080 after hitting day high at 3.086. 30 year yield was strongly and added 0.035 to 3.232. Again, yield was stronger at the longer end. In Asia, Japanese Nikkei is trading up 0.46%, extending medium term up trend. However, Singapore Strait Times is down -0.19% at the time of writing. Hong Kong HSI is worse, down -1.64%. China remains on holiday. Technically, Yen is regaining some strengthen in Asian session after rebound in EUR/JPY and GBP/JPY lost steam. Recent consolidation in two crosses is set to extend. Dollar is picking up some strength against Euro, Swissy, Sterling and Aussie as markets enter into European session. We'd probably see EUR/USD have a take on 1.1525 support and USD/CHF on 0.9866 resistance. GBP/USD's recovery overnight was rather weak and brief and it should revisit 1.2999 temporary low soon. |
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