 Risk appetite stages a come back in Asian session today as China pledged to "strive for a good start" in 2019. With Asian markets having broad based gains, New Zealand Dollar is leading commodity currencies higher. On the other hand, Yen is back under pressure, followed by Swiss Franc. Dollar is also weak while record US government shut down extends, after Trump rejected fellow Republican's proposal of stopgap reopen. But overall, Sterling is the strongest one for the week as markets await the highly anticipated Brexit meaningful vote. Technically, GBP/USD's rebound from 1.2391 is extending towards 1.3174 resistance. EUR/GBP took out 0.8927 support firmly yesterday and is now heading to 0.8825 fibonacci support. GBP/JPY breaches 139.88 resistance and sustained trading above the level could carry larger bearish implications. Talking about Yen crosses, both USD/JPY and EUR/JPY are displaying some strength and might try to recent recent rebound through last week's highs. In other markets, Nikkei is back from holiday and closed up 0.96%. At the time of writing, Hong Kong HSI is up 1.88%. China Shanghai SSE is up 1.25%. Singapore Strait Times is up 1.51%. Japan 10 year JGB yield is down -0.0012 at 0.013, staying positive. Overnight, DOW dropped -0.36%, S&P 500 dropped -0.53% and NASDAQ dropped -0.94%. Treasury yields displayed strength at the long end. 30-year yield rose 0.023 to 3.060. 10-year yield rose 0.009 to 2.710. But US yield curve remains inverted from 1-year (2.596) to 2-year (2.537) to 3-year (2.508) and 5-year (2.522). |
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