 Yen is trading as the strongest one for today after what many described as "currency crash". Key levels in many Yen crosses were breached. or even broken. In particular, USD/JPY just hold on to 2017 low at 104.62 after hitting 104.69. AUD/JPY even breached 72.39 (2016 low) and hit lowest since 2009. When yen crosses pared back some of the losses after the spike, outlook is now clearly bearish for most of them and more downside is expected. Staying in the currency markets, for now, Swiss Franc is the second strongest one for today, followed by Euro. But Dollar and Canada are the next strongest for the week. Australian Dollar is the worst performing one on China slowdown worry, for both the day and the week. Sterling is the second weakest for today and third weakest for the week on Brexit uncertainties. While there is extreme volatility in the currency markets, stocks were relatively calm though. DOW again staged an impressive comeback overnight. It initially dipped to as log as 22928.59 but closed up 18.78pts or 0.08% at 23346.24. S&P 500 rose 0.13% and NASDAQ gained 0.46%. In Asia, Japan is still on holiday. China Shanghai SSE is currently flat. Hong Kong HSI is down -0.44% while Singapore Strait Times is down -0.73% only. However, after Apple's cutting of revenue outlook DOW futures is currently down over -300 pts in Asia. It looks like US stock will be under pressure again. US treasury will be another key factor to watch ahead. 30-year yield finally closed below 3% handle at 2.982 overnight, down -0.038. 10-year yield dropped -0.025 to 2.661. More importantly, after the Apple's news, 10-year yield is now down to 2.620 in Asia. It's very close to 1-year yield at 2.616. | 
No comments:
Post a Comment