 Euro suffers heavy selling today as German-Italian yield spread widens further to above 310. It's clear that Italy is not doing to back down on its budget deficit plan despite strong criticism from EU. Besides, it would be facing risks of downgrade by credit agencies. Additional Euro weighed down by weak German trade data and IMF's growth forecasts downgrade. At the time of writing, Euro is the weakest one for today for sure. The second weakest is taken by Kiwi, then Sterling. Yen and Dollar are the strongest ones, followed by Australian Dollar. Risk aversion dominates European markets. DAX leads the way down by losing -0.59%, CAC down -0.42%, FTSE down -0.50%. Italian 10 year yield is currently up 0.062 at 3.629. German 10 year yield up 0.017 at 0.551. Earlier today, Italian 10 year yield hit as high as 3.712. In Asia, Nikkei closed down -1.32%, Singapore Strait Times down -0.47%. Hong Kong HSI just lost -0.11%. China Shanghai SSE indeed closed up 0.17%. Technically, EUR/USD picks up downside momentum again and fall from 1.1814 is on track to retest 1.1300 low. EUR/CHF will be looking at 1.1361 minor support to confirm completion of recent corrective rebound. USD/CHF is pressing 0.9954 temporary top and could resume rally or extend consolidation, depending on the fate of EUR/CHF. USD/JPY draws some support from 112.94. fibonacci level and focus will be back on 113.55 minor resistance to confirm completion of pull back from 114.54. |
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