 Sterling recovers mildly today but remains the weakest one on political turmoil in the UK. There is no clear sign of a come back in the Pound and it remains vulnerable for more selloff, even before weekly close. The markets are rather quiet in Asian overall. Australia, New Zealand and US Dollar are trading as the weakest ones, without much follow through momentum. Yen and Canadian Dollar are the strongest ones. For the week, Sterling is the worst performer, followed by Swiss Franc and then Dollar. New Zealand and Australian Dollar are the strongest. Technically, selloff in the Pound halted ahead of near term support levels. But theses levels, 1.2692 in GBP/USD, 142.76 in GBP/JPY and 0.8939 in EUR/GBP could be taken out easily on another round of selling. Dollar is engaging in corrective pull back and downside is so far limited. But both USD/JPY and USD/CAD are now risking deeper fall. In particular, 112.94 in USD/JPY is a key near term level to defend. In other markets, DOW rebounded overnight and closed up 0.83% at 25289.27. S&P 500 rose 1.06% and NASDAQ added 1.72%. 30 year yield closed up 0.014 at 3.368. But 10 year yield closed down slightly by -0.002 at 3.118. In Asia, Nikkei is currently down -0.08%. Hong Kong HSI is up 0.28%. China Shanghai SSE is up 0.88%. Singapore Strait Times is up 0.97%. Gold's recovery continues and is now back above 1215. WTI crude oil is hovering round 57, consolidating in tight range above 58.84 temporary low. |
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