 Sterling remains strong in general today, next to Australian and New Zealand Dollar. UK and EU officials came out dismissing the news regarding a Brexit financial services deal. But that didn't harm the Pound a bit. Instead, Sterling ignore weak manufacturing data and is supported by slightly more confidence BoE economic projections. On the other hand, Dollar and Yen are the weakest ones. In particular, Dollar suffers deep and steep pull back with EUR/USD's rebound from 1.1300 spilling over to other pairs. The greenback will need to look into tomorrow's non-farm payroll report for savior. Technically, GBP/USD's breach of 1.2921 resistance now serves as a sign of near term reversal. More upside could be seen back towards 1.3297 resistance. AUD/USD's break of 0.7159 resistance is an early sign of medium term reversal, followed EUR/AUD's break of 1.5984 support yesterday. Now it's time for EUR/USD to break 1.1421 resistance to provide more evidence for a broad based Dollar reversal. In other markets, European indices are mixed. At the time of writing, FTSE is up 0.06%, DAX up 0.26% but CAC is down -0.17%. German 10 year yield rises 0.0253 to 0.414, back above 0.4 handle. Italian 10 year yield drops -0.0691 to 3.363. That is, German-Italian spread is now back below 300. In Asia, Nikkei dropped sharply by -1.06% to close at 21687.65. But Hong Kong HSI, China Shanghai SSE and Singapore Strait Times recorded 1.75%, 0.13% and 1.39% gains respectively. |
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