 Early rebound in US stocks overnight initially supported Dollar. But the greenback couldn't hold on to the gains as stocks suffered steep reversal. Fed's rate hike was not the reason for the selloff. Instead, the trigger of the late selloff in US equities was threat of Trump's escalation of US-China trade war. In particular, NASDAQ suffered worst single day reversal in three years. Though, Asian markets stabilized after Trump tried to tone down a bit in a TV interview. But sentiments would remain vulnerable due to erratic nature of Trump. In the currency market, Yen is currently the weakest one for today, followed by Dollar and then Swiss Franc. Australian Dollar leads commodity currencies higher. Eurozone and Sterling are mixed. Technically, for now, EUR/USD and GBP/USD are held well below 1.1493 and 1.2919 minor resistance levels, hence, near term outlook stays bearish. Though, in case of further declines, we'd be cautious on bottoming at around 1.1300 1.2661 lows respectively. In other markets, Asian stocks are mostly in black for now. Nikkei is up 1.57%, Hong Kong HSI is up 0.30%, China Shanghai SSE is up 1.70%. But Singapore Strait Times is down -0.38%. Overnight, DOW lost -0.99%, S&P 500 down -0.66% and NASDAQ down -1.63%. 10 year yield rose 0.010 to 3.087 but was way off day high at 3.117. |
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