 Despite initial steep selloff, US equities staged a strong rebound before close and closed just slightly lower. The turnaround in sentiments carried on in Asian session with major indices all trading in black. With receding risk aversion, Australian and New Zealand Dollar are trading as the strongest one for today so far, followed by Canadian Dollar. Yen is naturally the weakest one for today, but European majors are also weak. For the week, Sterling is so far the weakest one as weighed down by Brexit uncertainty. Euro is trading as the third weakest as the EU and Italy have now formally started the budget clash. That could also be reflected in the strength of swiss Franc. Canadian Dollar pares back some of last week's post CPI losses. BoC is expected to raise interest rate today. The accompanying statement would determine the next direction for the Loonie. Dollar is the third strongest for the week so far even though it's struggling to extend gains despite hawkish Fed comments. Technically, we've pointed out before that Yen bulls refused to commit despite yesterday's rally attempt. That' clearly reflected in USD/JPY's recovery from 111.94 minor support and the lack of follow through selling in EUR/JPY and GBP/JPY. To a certain extent, Dollar bulls already refused to commit too. The greenback is for now struggling in tight range against dollar ahead of near term resistance. USD/CAD and USD/CHF are also staying in tight range. Focuses for the rest of the week will be on which sides Dollar and Yen would finally take. | 
No comments:
Post a Comment