Yen and Dollar are the strongest ones today as global stock markets are back in selloff mode. Sentiments turned sour after weaker than expected Chinese sales and production data. Adding to that, Eurozone came showed further decline in growth momentum, verifying ECB's concerns. China's concessions on retaliation tariffs on US autos are a positive news, but couldn't turn things around. Dollar is gaining a bit extra advantage after slightly better than expected retail sales data. But that's just a matter of 0.2% growth versus 0.1%. DOW futures are pointing to lower open, and we'll see if selling would intensify onwards. Staying in the currency markets, New Zealand and Australian Dollar are the weakest ones on risk aversion naturally, in particular on Asian slowdown. Sterling is the third weakest today on Brexit worries. Euro isn't too far away though. In other markets, FTSE is currently down -0.66%, DAX is down -0.65% and CAC is down -1.05%. German 10 year yield is down -0.024 % 0.262. Italian 10 year yield is up 0.006 at 2.975. Earlier today, Nikkei closed down -2.02%, Hong Kong HSI closed down -1.62%, China Shanghai SSE dropped -1.53%. Singapore Strait Times dropped -1.09%. Japan 10 year JGB yield dropped again by -0.0191 to 0.035. Technically, AUD/USD is finally moving away from 0.7199 support, confirming near term reversal. Retest on 0.7020 low should be seen next. Steep selloff is seen in EUR/USD and EUR/JPY and they are likely having downside breakout finally. 1.1267 support and 124.79 support should be watched closely to confirm. Released from the US, retail sale rose 0.2% mom in November versus expectation of 0.1% mom. Ex-auto sales rose 0.2% mom, matched expectations. |
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