 Yen remains the strongest one for today as the risk aversion dominates the global markets. Major European indices do pare back much of earlier losses. But it's unsure whether the recovery could sustain. Persistent decline in German 10 year bund yield, which hit the lowest since April 2017, is something for investor to worry about. Also, DOW futures is now down -300 pts, pointing to sharply lower open. More importantly, focus will also be on how much US yield curve would flatten at the long end, and invert from 1-year to 5-year. Staying in the currency markets, Canadian Dollar is the second strongest, thanks to steadiness in WTI crude oil which stays above 45. Dollar is the third strongest one. Meanwhile, Sterling is reversing Monday's surprised gain and is trading as the weakest, followed by Australian Dollar and then Euro. Technically, GBP/JPY's strong break of 139.29 key support now confirms medium-to-long term bearish reversal. EUR/JPY will be looking at equivalent key support at 124.08. EUR/USD breached 1.1485 resistance briefly earlier today and quickly reversed. Focus will now be on 1.1342 minor support and break will be the first sign of larger decline resumption. With today's selloff, GBP/USD is eyeing 1.2615 minor support and EUR/GBP is eying 0.9086 resistance. In Europe, at the time of writing, FTSE s down -0.60%, DAX is down -0.25%, CAC is down -1.34%. German 10 year yield is down -0.0882 at 0.161, lowest since April 2017. Earlier in Asia, Hong Kong HSI dropped -2.77%. China Shanghai SSE dropped -1.15%. Singapore Strait Times dropped -0.97%. Japan was on holiday. |
No comments:
Post a Comment