 While Asian markets initially opened lower following the US, major indices turned positive after lunch. The development lifted Australian and New Zealand Dollar slightly. But Canadian Dollar is treated differently as weighed down by resumption of free fall in oil prices. The Loonie is trading as the weakest for today, after Yen and then Dollar. Nevertheless, for the week, Aussie and Loonie remain the worst performing. Swiss Franc is the strongest one, followed by Yen and Dollar. The economic calendar is not too heavy ahead. Technically, while Dollar recovered overnight, there is no follow through buying to confirm underlying strength yet, except versus Canadian. AUD/USD and AUD/JPY defended near term minor support levels, and thus maintained mild bullishness. EUR/GBP is a pair to watch today as it lost further momentum ahead of 0.8939 resistance. UK May's meeting with EU Juncker, and the EU's report on Italy's budget could trigger some volatility in EUR/GBP. In other markets, DOW lost -2.21% yesterday to 24465.64. S&P 500 closed down -1.82% and NASDAQ dropped -1.70%. Treasury yields were mixed with five year yield closed up 0.004 at 2.870. But 10 year yield dropped -0.009 to 3.048. In Asia, Nikkei closed down -0.35%. But other major Asian indices turned positive after initial selloff. At the time of writing, Hong Kong HSI is up 0.30%, China Shanghai SSE is up 0.19%, Singapore Strait Times is up 0.55%. |
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