 Canadian Dollar remains the strongest one today as boosted by the new trilateral USMCA trade deal with US and Mexico. Meanwhile, Sterling is shot up by news that UK Prime Minister Theresa May is ready to make a new offer on Irish border on Brexit negotiation. However, no details is known yet and the report is based on unnamed source. And more importantly, it's in contrast to the hard line rhetorics we've heard today. The Pound could be hammered down quickly if it's denied. On the other hand, Yen is the weakest one on strengthen in global stocks and yields. New Zealand Dollar follows as second weakest. European markets are notably boosted by the USMCA agreement, in particular DAX. At the time of writing, DAX is trading up 0.70%, CAC up 0.34% and FTSE up 0.17%. German 10 year yield is up 0.0284 at 0.501, back above 0.5 handle. However, Italian 10 year yield also rises 0.038 to 3.180, showing that concerns over the populist government's budget are still there. Earlier today, Nikkei extended recent strong rise and closed up 0.52% at 24245.76. Singapore Strait Times reversed earlier gains and closed down -0.05% at 3255.46. China and Hong Kong were on holiday. Technically, the main focus in the US session would be on whether treasury yield will follow Germany higher. That would be a factor that drives up Yen crosses. USD/JPY has already resumed up trend last week and is on course for 114.73 resistance, which is some distance away. But selloff in Yen could lift EUR/USD through 133.12 and GBP/JPY through 149.70. These two levels are worth a watch. |
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