Sterling is staying as the strongest one for the week after UK Prime Minister Theresa May narrowed survived the confidence vote in Commons. Though, there is no follow through buying against Dollar. Upside momentum in the Pound is also relatively weak against Euro and Yen. Traders would probably stay cautious until May tells us what's next on Monday. Staying in the currency markets, Dollar and Yen are stronger today while Commodity currencies are generally. But fresh selling is seen in Euro and Swiss Franc as we enter into European session. Persistent worries over Eurozone slowdown, in particular in Germany and Franc, will weigh on Euro, which in turn drags down the Franc. Technically, USD/CHF is sustaining well above near term falling channel, which carries bullishness implication. Focus will stay on 0.9963 resistance and break will confirm completion of corrective pull back from 1.0128. EUR/USD is on course to 1.1307 support. Break there will be an early sign of larger down trend resumption. USD/CAD is extending the consolidation from 1.3180 temporary low. But near term outlook will remain bearish as long as 1.3323 minor resistance holds. Similar, while AUD/USD is retreating, rebound from 0.6722 could still have another leg up as long as 0.7116 minor support holds. In other markets, stocks markets in Asia are rather quiet. Nikkei is down -0.26%. Hong Kong HSI is up 0.07%. China Shanghai SSE is up 0.30%. Singapore Strait Times is down -0.21%. Japan 10-year JGB yield is down -0.0025 at 0.005, still positive. Overnight, DOW rose 0.59%. S&P 500 rose 0.22%. NASDAQ rose 0.15%. All three indices are now facing 55 day EMA resistance. 10-year yield rose 0.20 to 2.731 but 30-year yield rose just 0.006 to 3.077. Yield curve remain inverted from 1-year (2.579) to 2-year (2.545) to 3-year (2.525) and 5-year (2.542). But it's looking was better than just a few weeks ago. |
No comments:
Post a Comment