 The UK is in the center of focus again today. Now the time has come for a leadership challenge on UK Prime Minister Theresa May. Sterling gains a lot of round as it looks like May could survive this big test for her Brexit deal. The Pound is so far trading as the strongest one for today., followed by Euro, and then Canadian. On the other hand, New Zealand Dollar is the weakest one, walking its own path. Yen and Swiss Franc are also soft on improving risk sentiments. US and China are making progresses on trade war. Dollar also turns slightly weaker after consumer inflation data. Technically, GBP/USD and GBP/JPY should have formed temporary bottoms and EUR/GBP formed temporary top. There is some upside potential in Sterling, for the nearest term. But then, there is no indication of bullish reversal yet, and it could come back under pressure quickly. While Dollar trades lower, EUR/USD, USD/CHF, AUD/USD and USD/CAD are trading familiar range. Some more is needed to indicate Dollar's near term weakness. In other markets, FTSE is currently up 1.29%, DAX up 1.29%, CAC up 2.07%. German 10 year yield is up 0.0327 at 0.268. Italian 10 year yield is down -0.121 at 2.996. German-Italian spread is now at 272, a very positive sign. Earlier in Asia, Nikkei closed up 2.15%, Hong Kong HSI up 1.61%, Shanghai SSE up 0.31% and Singapore Strait Times up 1.33%. 10 year JGB yield also closed up 0.0104 at 0.056. |
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