 European majors are trading notably lower today. Euro is weighed down by concerns over slowdown in Germany, which might already had a technical recession in Q3 and Q4 already. Sterling also pares back some gains again traders turn cautious, ahead of the Brexit meaningful vote. Commodity currencies are relatively resilient but they're just bounded in tight range. There was some optimism earlier after China pledged to strive for a strong start in 2019. But such optimism quickly faded. Dollar is trading mixed while US government shutdown is extending its record run. Technically, EUR/USD's breach of 1.1422 minor support suggests that recent rebound has completed earlier than expected. More downside is now mildly in favor for 1.1307 support. Ideally, that should be accompanied by stronger rebound in USD/CHF to 0.9963 resistance. Another development is EUR/JPY and GBP/JPY struggled to stay above 124.61 and 139.88 resistance respectively, and retreated. We'd continued to expect strong resistance from these levels to complete the rebound in the two Yen crosses. In other markets, at the time of writing, FTSE is down -0.01%, DAX is down -0.21%, CAC is up 0.08%. All three major European indices are in tight range. German 10-year bund yield is down -0.021 at 0.210. Earlier in Asia, Nikkei rose 0.96%, Hong Kong HSI rose 2.02%, China Shanghai SSE rose 1.36%, Singapore Strait Times rose 1.22%. Japan 10-year JGB yield closed down -0.0123 at 0.013. |
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