 Yen is trading as the second strongest one for today, next to New Zealand Dollar, as risk aversions spread from the US to Asia. There were continuous rhetorics from Trump's administration against Fed's rate hikes. But the fact that Dollar and yields are weak argues that the free fall in stocks is due to some more fundamental challenges of the economy. And there has been clear flow from stocks to bonds in the US, Germany and Japan. Investors are clearly worried about a global slowdown. For today, Euro is the weakest one, followed by Dollar and Swiss Franc. Technically, EUR/JPY is now pressing 127.61 support and break there will at least bring a retest on 126.63 support, with prospect of resuming recent decline from 133.12 to 124.89 support next. USD/CHF is also eyeing 0.9911 minor support and break will likely resume choppy correction from 1.0128 for 0.9862 low again. AUD/USD might now consolidate above 0.7153 temporary low but outlook will stay bearish as long as 0.7246 minor resistance holds. EUR/USD, GBP/USD and USD/CAD are staying in consolidation in familiar range. In other markets, DOW dropped -507 pts or -2.11% to 23592.98. S&P 500 declined -54.01 pts or -2.08% to 2545.94. NASDAQ lost -156.93 pts or -2.27% to 6753.73. Nikkei closed down -1.64% at 21115.45. At the time of writing, Singapore Strait Times is down -2.05%, Hong Kong HSI is down -1.03% and China Shanghai SSE is down -0.82%. In bond markets, US 10 year yield dropped -0.034 to 2.857. Yield curve is inverted between 2-year (2.696) and 3-year (2.683). 5-year yield is not far away at 2.692. Japan 10 year JGB yield is down -0.0126 at 0.024. |
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