Dollar weakness remains the main focus in rather directionless markets today. The greenback suffered steep selloff last Friday on rumors that Fed would discussing cutting short the balance reduction process. And Dollar will face a number of key events this week. FOMC meeting is for sure a highly anticipated one. In addition, US-China trade talk will resume. Non-farm payroll will be released, plus possible a number of missed economic data too. As for today so far, Sterling is the weakest one, followed by Canadian Dollar. But both are just correcting some of last week's gains. The picture may change drastically ahead. On the other hand, New Zealand Dollar is the strongest, followed by Yen and then Swiss Franc, suggesting lack of direction in the risk markets. Technically, two focuses will be on 0.7233 in AUD/USD and 1.3180 in USD/CAD. Break of these levels will confirm resumption of selloff in Dollar again the two currencies. GBP/USD's break of 1.3174 key resistance carries larger bullish implication. We'll see if GBP/USD could sustain above this level and extend the gain. Or, rebound in EUR/GBP from 0.8620 key support level would drag GBP/USD back below 1.3174. In other markets, Nikkei closed down -0.60% at 20649. Currently, Hong Kong HSI is down -0.16%. China Shanghai SSE is down -0.17%. Singapore Strait Times is down -0.13%. Japan 10-year JGB yield is down -0.002 at -0.002, turned negative. |
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