 Sterling surged overnight on Brexit optimism and is boosted further in Asia with more Brexit-positive news. Though, for today, it's overwhelmed by Australian and New Zealand Dollar on strong risk appetite. The Pound will need to look into BoE economic projections for more inspirations. Dollar, on the other hand, is losing ground broadly again, reversing some of yesterday's socks and yield supported gains. The greenback is followed by Canadian Dollar and Yen as the second and third weakest. Technically, Euro is an interesting one to watch today. EUR/USD appears to be supported by 1.1300 key level for now and recovers. However, the selloff in EUR/GBP and EUR/AUD is limiting Euro's rebound. EUR/GBP's break of 0.8868 minor support yesterday already suggests near term reversal and could bring deeper fall back to 0.8722 support. The break of 1.5984 support in EUR/AUD is even more important as it's an early indication of medium term reversal. It remains to be see, after all the movements offset each other, whether EUR/USD could defend this key 1.1300 level successfully. In other markets, DOW closed up 241.12 pts or 0.97% at 25115.76. S&P 500 gained 1.09% to 2711.74. NASDAQ added 2.01% to 7305.90. There are tentative signs of near term reversal in US stocks. Treasury yields also rose broadly after gapping up. 10-year yield rose 0.049 to 3.159. 30 year yield rose 0.046 to 3.402. In particular, 30-year yield has prospect of breaking 3.424 near term resistance to resume recent up trend, before weekly close. Asian markets are mixed though. Nikkei is currently down -0.7%. But Hong Kong HSI is up 1.84%, China Shanghai SSE is up 1.13% and Singapore Strait Times is up 1.16%. Japan 10 year JGB yield is up another 0.0051 at 0.134. |
No comments:
Post a Comment