 Dollar softens mildly against European majors in early US session after weaker than expected job data. But risk aversion remains the overall theme of the market. Australian Dollar stays the weakest one, followed by Canadian and New Zealand Dollar. WTI crude oil is back at 51.2 as even though OPEC+ might agree to a production cut next yet, the number could be more symbolic than substantial. Meanwhile, Yen remains the strongest ones, followed by Europeans. Sterling is somehow hibernating, waiting for next week's Brexit vote in UK Commons. Some attributed stocks selloff to arrest of Chinese tech giant Huawei's CFO in Canada, on request by the US. There are worries that such act could jeopardize US-China trade truce. And there are talks that investors simply don't believe there's anything concrete out of the Trump-Xi meeting. But we'd like to point out again that US Trade Representative Robert Lighthizer was assigned to take over the negotiation. Lighthizer is the only one in the cabinet who knows how to make a trade agreement, like the USMCA. And he's now leaving EU Trade Commission Cecilia Malmtrom behind, with focus turned to China. That's strong enough a signal that both sides are going to deliver something solid in the next 90 days or so. Or at least, Trump believes so. Instead, we'd point to the sharp decline in bond yields and stocks as sign of worry in global slow down. Japan 10 year JGB yield closed at 0.05 today, lowest close since July. And it hit as high as 0.166 just back in early October. German 10 year bund yield is now down -0.027 at 0.250. It hit as low as 0.244, lowest since the one day spike low of 0.186 in June. If only daily close is considered, 10 year bund yield is at lowest since April 2017. US 10 year yield opens lower again and breaks 2.9 handle to 2.887. DOW futures is currently down -400 pts. Technically, EUR/USD, USD/CHF, GBP/USD, USD/JPY, EUR/JPY are bounded in familiar range. USD/CAD is showing some convincing to holding itself above 1.3385 key resistance. 1.3685 fibonacci level would be next target should WTI crude oil breaks below 50 handle again. AUD/USD is now pressing 0.7199 support. EUR/AUD is also smelling 1.5781 resistance. Break of these two level will prompt deeper selloff in the Aussie. |
No comments:
Post a Comment