Sterling is the star performer today as campaign to block no-deal Brexit in the UK gathers momentum. Some upside acceleration is seen after the Pound takes out near term resistance against Dollar, Euro and Yen. New Zealand Dollar is following as the second strongest as boosted by stronger than expected CPI. Though, it handed the top spot to the Pound in early US session. On other hand, as risk sentiments stabilized, Yen is trading as the weakest one, followed by Swiss Franc. Canadian Dollar turns softer after weaker than expected retail sales. But loss in the Loonie is so far limited. Technically, GBP/USD and GBP/JPY reaches recent rally today. GBP/USD is heading to 1.3174 key resistance. GBP/JPY is targeting 143.93 first and could march towards 150 handle later. EUR/GBP is now targeting 0.8620/55 support zone. USD/JPY also breaks 109.89 resistance to resume recent rebound. Now, it's EUR/JPY's turn to take on 125.09 resistance. One more level to watch is 0.7116 in AUD/USD. Break should confirm near term bearish reversal. In other markets, FTSE is currently down -0.33%. DAX is up 0.32%, CAC is up 0.46%. German 10-year yield is up 0.010 at 0.248. Earlier in Asia, Nikkei closed down -0.14%. Hong Kong HSI rose 0.01%. China Shanghai SSE rose 0.05%. Singapore Strait Times dropped -0.68%. Japan 10-year JGB yield rose 0.0034 to 0.004, turned positive. US futures point to higher open. There was some jitters on renewed concern over US-China trade negotiations yesterday. But traders were quickly calmed by White House economic advisor Larry Kudlow's comment that "the story was unchanged, We are moving towards negotiations." Released from Canada, headline retail sales dropped -0.9% mom in November versus expectation of -0.5% mom. Ex-auto sales dropped -0.6% mom versus expectation of -0.4% mom. From US, house price index rose 0.4% mom in November versus expectation of 0.2% mom. |
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