 Yen jumps broadly today as Asian stocks weaken, moving past the positive catalyst of US-China trade truce quickly. Nikkei closed down -2.39%, more than enough to reverse Monday's 1.00% gain. Additionally, 10 year JGB yield is down is down -0.010 at 0.073, comparing to October's high at 0.162. There is notably some safe haven flows happening in Japan. Staying in the currency markets, New Zealand Dollar and Euro follow as the next strongest. Australian Dollar is mixed after RBA stands pat. Dollar is the weakest one, as also pressured by falling US yields. Canadian Dollar and Sterling are the next weakest. Technically, Sterling's weakness is worth most notice. GBP/USD breached 1.2725 yesterday and that's a sign of near term bearishness. GBP/JPY is now kissing 114.02 support while EUR/GBP is also heading to 0.8939 resistance. Break of these levels will align Sterling's bearish outlook in different pairs and we'd still more broad based selloff in the pound then. USD/JPY's break of 113.18 suggests that fall from 114.03 is resuming towards 112.30 support next. Otherwise, major pairs are generally range bound. In other markets, DOW closed up 1.13% at 25826.43 overnight but pared back much gain after hitting 25980.21. S&P 500 rose 1.09% while NASDAQ rose 1.51%. 30 year yield closed down -0.033 at 3.278 while 10 year yield closed down -0.021 at 2.992. In Asia, Nikkei closed down -2.39% at 22036.05. At the time of writing, Hong Kong HSI is down -0.37%. Singapore Strait Times is down -1.12%. But China SSE is up 0.10%. |
No comments:
Post a Comment