 Swiss Franc is clearly the strongest one for today but the underlying reason is not apparent. There is no clear problem in emerging markets. Meanwhile, Euro is indeed following Swiss Franc, as another strong one. Sterling is a bit mixed as there is no new developments regarding May's leadership challenge, nor on Brexit. On the other hand, commodity currencies are back under pressure as last week's rally faded. Technically, while EUR/GBP is strong, there is no follow through buying to break 0.8939 resistance yet. USD/CHF's fall now put 0.9952 support in progress and bring will be a strong sign of near term reversal. While the greenback looks bad against the Swissy, AUD/USD fails to sustain above 0.7314 resistance and dips back below 0.73 handle. Dollar might be rebounding there. Talking about Aussie, a focus will be 1.5693 minor resistance in EUR/AUD and break will suggest short term bottoming. In other markets, major European indices are trading in black for now. FTSE is up 0.59%, DAX up 0.07% and CAC up 0.15%. German 10 year yield is up 0.022 at 0.392. Italian 10 year yield is up 0.018 at 3.508. German-Italian spread is over 310. Earlier in Asia, Nikkei rose 0.65%, Hong Kong HSI rose 0.72%, China Shanghai SSE rose 0.91% but Singapore Strait Times dropped -0.6%. A more interesting development was that 10 year JGB yield dropped -0.0112 to 0.095, back below 0.1%. |
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