 Euro recovers broadly today on new that the final version of Italy's budget could be less worse than originally reported. More details could be published today and we'll see how the common currency, as well as German and Italian yield react. Meanwhile, Sterling also recovers as markets prefer for UK PM Theresa May's speech at the Conservative Party Conference in Birmingham. For now, New Zealand and Australian Dollar are the weakest ones today, followed by Swiss Franc. Asian markets continue to trade in risk averse mode today. Hong Kong HSI is extending yesterday's steep decline and is down -0.52% at the time of writing. Nikkei is down -0.71%. But Singapore Strait Times is up 0.80%. Overnight, DOW made record high at 26824.78 before closing at 26773.94, up 0.46%. However, S&P 500 dropped -0.04% while NASDAQ lost -0.47%. Treasury yield also closed lower with 10-year yield down -0.024 at 3.056. Gold on the other hand, rebounded strongly and is back above 1200 at 1205.7. Technically, the triangular relationship of Dollar, Euro and Yen is a development to watch today. EUR/USD's break of 1.1525 support yesterday was bearish. EUR/JPY breached 130.86 support but quickly recovered, maintaining near term bullishness. USD/JPY lost momentum after hitting 114.05 and is now in near term consolidation. It remains to be see if deeper pull back in USD/JPY would drag down EUR/JPY. Or rebound in EUR/JPY would lift USD/JPY, in push EUR/USD higher instead. It's very interactive. |
No comments:
Post a Comment