 In an originally quiet holiday trading day, Sterling surges broadly as UK and EU agreed on the declaration on future relationship. The move, while strong, is relatively limited at this point. There seems to be some hesitation for Sterling bulls. They'd probably prefer to wait and see how the cabinet would respond to the declaration first. And of course, more resignations from the Cabinet would shake up the picture again. At this point, Euro is follow the Pound as the second strongest, and then Canadian Dollar. New Zealand and Australian Dollar are the weakest one for today, followed by Swiss Franc. Technically, Sterling pairs will not catch most attention. Break of 0.8824 minor support in EUR/GBP will indicate rejection by 0.8939 resistance. And in that case, deeper fall would be seen back to 0.8655 support. GBP/JPY is also having focus back on 145.99 minor resistance. Break will indicate completion of pull back from 149.48 and GBP/JPY would head back towards 149.70 key resistance. GBP/USD's break of 4 hour 55 EMA could now bring stronger rise back to 1.3071 resistance and above. In other markets, major European indices are all in red at the time of writing. FTSE is down -1.04%, DAX is down -0.78%, CAC is down 0.60%. German 10 year yield is down -0.013 at 0.365. Italian 10 year yield is down -0.039 at 3.441. German-Italian yield spread is still above 300. Earlier today, major Asian indices ended mixed. Nikkei gained 0.65%, Hong Kong HSI rose 0.18% and Singapore Strait Times added 0.09%. But China Shanghai SSE dropped -0.23%. |
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