 It's a relatively calm day today despite all the high profile events. At the time of writing, Euro is trading as the weakest one after ECB delivered a dovish shift as expected. In short, 2019 growth and inflation forecasts are lowered, and Draghi said balance of risks are moving to the downside. But it will take more time to see if Euro is really reversing for the near term. Swiss Franc trades mixed after SNB retained negative interest rate policy and pledged to stay active in intervention. Sterling is the strongest one so far. After winning yesterday's leadership challenger, UK PM May is now in Brussels, with no expectation of a breakthrough though. Technically, EUR/USD, EUR/JPY, EUR/GBP, EUR/AUD are staying in familiar range despite today's up and downs. EUR/GBP and EUR/AUD are bullish with 0.8931 and 1.5596 support intact. But EUR/USD and EUR/JPY are near term bearish with 1.1472 and 130.14 resistance intact. Meanwhile, GBP/USD is staying well below 1.2811 resistance and keeps bearish outlook. But GBP/JPY could have a taken on 144.02 resistance as early indication of bullish reversal. In other markets, major European indices are mixed for the time being. FTSE is down -0.18%, DAX up 0.19% but CAC down -0.09%. German 10 year yield is up 0.0002 at 0.282. But Italian 10 year yield drops notably today and is now down -0.082 at 2.932. Earlier in Asia, Nikkei rose 0.99%, Hong Kong HSI rose 1.29%, Shanghai SSE rose 1.23%, Singapore Strait Times rose 0.36%. |
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