 Sterling continues show a lot of resilience today. In despite of weaker than expected August GDP report, as well as mixed productions data. the Pound manages to trade as the strongest one for today. Optimism on Brexit negotiation is a factor as there are rumors flying around, hailing progress made. But it should be noted that no details whatsoever on the so call progress are reported. Instead, Brexit Minister Dominic Raab sounded rather clear he's not shooting for a deal within this month, but next. And after all the nice words, EU would have to do what Raab said, that is, meet them "half way", or there won't be any deal. For now, Euro is taking turn to be the strongest one for today with Sterling. As noted before, we believed that selling climax in Italian bonds is passed temporarily. German-Italian spread is back below 300 today. But Italy and Euro are both still vulnerable as credit agencies are lining up to publish their review on Italy towards the end of the month. Dollar is trading slightly firmer today. But it's for now seen as a leg in consolidative pattern, which doesn't warrant a breakout from range yet. Mixed PPI data from US also provides no help to the greenback. Yen, New Zealand and Australian Dollar are the weaker ones. In Europe, stocks selling seem to have picked up some steam as the day goes. At the time of writing, CAC is down -0.99%, DAX down -0.88%, FTSE down -0.27%. Italian 10 year yield is down -0.017 at 3.494. German 10 year yield is up 0.0265 at 0.578. Earlier in Asia, Nikkei rose 0.16%, Hong Kong HSI rose 0.08%, China Shanghai SSE rose 0.18%. But Singapore Strait Times dropped -1.11%. 10 year JGB yield dropped -0.0065 to 0.156, still way above BoJ's allowed band of -0.1 to 0.1%. |
No comments:
Post a Comment