 Pound is at the center of focus today as it finally shows some commitment on the downside. The trigger of the selloff is report that UK Prime Minister Theresa May is going to call off tomorrow's Brexit parliamentary vote. Weak economic data of course also add to the pressure of the Pound. At this point, Sterling is overwhelmingly the weakest one for today, followed by Yen, and then Canadian. New Zealand Dollar is the strongest one so far. Euro shrugs off poor investor confidence data and follows as second strongest, thanks to rally to EUR/GBP. Technically, GBP/USD's break of 1.2661 key support now indicates medium term down trend resumption. EUR/GBP is heading to 0.9098 and break will put focus on 0.9305 high. GBP/JPY also breaks 142.76 support and is now on track to 139.88 key support. The forex markets are rather steady elsewhere though. Dollar trades a touch weaker against Euro and Swiss Franc but there is no follow through selling. The greenback is also bounded in familiar range against Aussie and Canadian. In other markets, FTSE is now trading up 0.49%, thanks to lower Pound. DAX is down -0.39% and CAC is down -0.30%. German 10 year yield is up 0.0076 at 0.258. Meanwhile, Italian 10 year yield is down -0.031 at 3.100. German-Italian spread continues to narrow. WTI crude oil is trading at around 51.7 as consolidation continues. Gold is consolidating at around 1245. Earlier in Asia, all major indices closed lower, but except Nikkei, losses were limited. Nikkei closed down -2.12%, Hong Kong HSI down -1.19%, China Shanghai SSE down -0.82%, Singapore Strait Times dropped -1.24%. Japan 10 year JGB yield dropped for another day, by -0.023 to 0.04, pretty strong rally in bonds. |
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